"On
November 22nd 1963, my uncle President
John F Kennedy, went to Dallas
intending to condemn as nonsense the
right wing notion that peace is
a sign of weakness. He meant to
argue that the best way to demonstrate
American strength was not by using
destructive weapons and threats, but
by being a nation that practices what
it preaches about equal rights and
social justice, striving toward peace
instead of aggressive ambitions.
Despite the Cold War rhetoric of his
campaign, JFK's greatest ambition
as president was to break the militaristic
ideology that has dominated our country
since World War II. Hugh Sidey, a
journalist and friend, wrote that
the governing aspect of JFK's leadership
was a total revulsion of war." ~ Robert F Kennedy Jr

(the next 50 years have seen the Fascist Business Model has merged with the
War Machine, the Wall Street fraud
totaling in $trillions, the war costs
in $trillions, the core industry largely
vanished, the national bankruptcy
almost complete, the federal deficits
out of control, the debts covered
by inflation, the leaders working
their own agenda, the political dysfunction
appalling, the financial corruption
pervasive, the economy mired in an
interminable recession, the people
feeling betrayed losing hope, the
homestead equity protection gone,
as the path away from the Kennedy
vision seems a path to US destruction)

"If you want to know when a society
vanishes, watch money. Whenever destroyers
appear among men, they start by destroying
money, for money is men's protection
and the base of moral existence. Destroyers
seize gold and leave to its owner
a counterfeit pile of papers." ~ Ayn Rand

"History will overwhelmingly approve
of Quantitative Easing." ~ Lawrence Summers (moron castoff
from Harvard, who jumped off the building,
and is now somewhere between the 10th
and 15th floors)

"He
that is good at making excuses is
seldom good for anything else." ~ Benjamin Franklin (founding father US
statesman)

"Ignorant
citizens elect ignorant leaders. It
is as simple as that." ~ George Carlin (comedian and current US
philosopher)

"Ignorant,
gullible, and poorly raised people
select syndicate puppets as leaders
with glee, but they compensate for
their errors by repeating the process,
sometimes using the other political
party, which happens to be identical
except for subtleties and formalities
like preferring an elephant or a donkey
as mascot, but still sleeping with
bankers and acquiescing to war." ~ Jackass

"What
the Federal Reserve is doing is utter
insanity. The rest of the world is
starting to lose faith in our financial
system and the USDollar, and this
is the most important consequence
of QE money printing [for bond purchases].
The [foreigner economies] actually
use more dollars outside the United
States than [the
domestic economy uses] inside the
United States. The economic collapse is happening
right now. It is a steady decline
punctuated by moments of crisis like
we saw back in 2008. [The next crisis]
will be like 2008 on steroids. We
are living in the greatest debt bubble
in the history of the planet. Learn
how to grow good food, get alternative
sources of energy, and hold gold &
silver for the long term." ~ Michael Snyder

"The COMEX currently has 223
tons of gold stored in its custodian's
vaults. [Then] 203 tons of this gold
is reported as Eligible, which means
that it is owned by others who have
warrants to claim it. The COMEX vaults
are storing this gold which is Eligible
to be reclassified as Registered gold
in the event that the owner decides
to sell it. The COMEX has 20 tons
of gold to cover a potential demand
of 572 tons in December alone. The
situation seems extreme. But somehow,
the COMEX has avoided a delivery default
and cash settling future contracts
in all previous months. December contracts
are very popular. So a comparison
to last year at this time is more
instructive than comparisons to previous
months of 2013. Going in to year end,
the COMEX currently has proportionally
fewer ounces to cover December contracts.
All I want for Christmas is for just
10% of the December contract holders
to stand for delivery and publicize
when the COMEX forces them to settle
for cash instead of bullion. This
charade has gone on long enough!"
~ Jesse (of Cafe Americain)

"Inﬂation
is not measurable. We can summarize
our views on money with similar succinctness:
it is poorly understood. As for the
economy, we know only this: it is
a complex system. From these observations
can be derived a straightforward corollary
on economic policy makers: trying
to control a variable you cannot measure
(inﬂation) with a tool you
do not fully understand (money) in
a complex system with hidden unobservable
and non-linear interrelationships
(the economy) is a guaranteed way
to ensure that most things which happen,
were not supposed to happen." ~ Dylan Grice

"The
gold price will continue down until
the COMEX is dead and shut down, with
no gold held in inventory, facing
multiple lawsuits for contract fraud.
It is that simple, since the rest
is noise and outward musings." ~ Jackass

"There
is nothing the Fed can do to solve
the depression or to change the structural
problems in the US economy. I may be a critic
and I may be able to point out why
they are wrong, why their models are
wrong and why this says NO GOOD EXIT,
but they think they are right. They
are gonna keep going and kind of drive
the bus over the cliff. Now, at that
point, when the crisis emerges, they
may have to go to a Gold Standard.
They do not want to, but they may
have to, so as to restore confidence." ~ Jim Rickards (the crisis emerged
five years ago, Big Jim, and the Eastern
nations are already working on the
Gold Trade Standard, which you never
talk about because you have one foot
in the Anglo banker camp, much like
a mole)

"We
should not even care about a financial
metric like the Gold Forward Rate,
when some connected insiders mention
repeatedly that the Gold market is
broken and gold is not available in
size, except for the Eastern central
banks and a few select geo-politically
connected billionaires." ~ EuroRaj

## INTRO GOLD NUGGETS

◄$$$ LANGLEY LARRY ADDED TO THE GLOBAL YUAN PERSPECTIVE. $$$

The following is from a CIA source, straight from Langley,
taken verbatim. "China released this afternoon
an official statement that it will
stop stockpiling USDollars. China will cease adding to its US debt to hold the total
of USDollars at or below current levels.
Most Chinese held US government debt is due
within nine months at maturity. China
is now in on the market moves that
the US and UK have been making. China also issued rules allowing
all futures on Chinese exchanges to
be prced in Yuan/renmimbi. China
also announced that multi-billion
(in USDollar equivalent amounts) of
Yuan contracts for oil & gas had
been signed with Iran for the next five years. This is the
first major contract with a duration
but without a top amount signed in
Yuan only. Iran
is not allowed by the USGovt to use
dollars. So Iran took Yuan from its main trading partner and
ally. Other countries have made product
exchange and barter contracts in their
own currencies with China. But the contract with Iran is a straightforward futures contract with
Iran in Yuan. China also announced
that it has made but not yet officially
started contracts between two other
countries, where the contracts do
not involve China using Yuan as the currency
of exchange. The Yuan is now
beginning to replace the USDollar
as the global exchange currency and
WashingtonDC will be screaming about
this, demanding use of the USD to
continue. Oil is already being
sold against a basket of currencies
rather than for dollars and the portion
in USDollars falls on January 1, 2014."

◄$$$ THE CHINESE ARE GRABBING HARD ASSET SOURCES AND ENERGY OUTFITS. AFTER
THE OGX GIANT, ANOTHER BRAZILIAN COMPANY
HAS DEFAULTED, A NICKEL MINING COMPANY.
WATCH CHINA GRAB IT QUICKLY. EXXON
MOBIL WILL SELL ITS POWER STATION
TO A CHINESE FIRM. GOLDMAN SACHS IS
IN TALKS TO SELL ITS METALS WAREHOUSE
BUSINESS, THE LIKELY BUYER TO BE A
CHINESE FIRM. ONE BY ONE, BIG ESTABLISHMENT
COMPANIES AND THEIR ASSETS ARE BEING
TRANSFERRED TO CHINESE HANDS. EXPECT
MORE USTBONDS USED AS CURRENCY IN
THE LIQUIDATION BUYOUTS, THE INDIRECT
EXCHANGE FLOW. $$$

Mirabela Nickel has become the first Australian company since April 2009 to
default on a bond denominatd in USDollars.
The miner failed to meet a semi-annual
coupon payment on a US$395 million
2018 senior secured notes, due on
October 15th. They bear 8.75% but
defaulted. They missed a US$17.3 million
payment, the grace period ending on
November 14th, according to Standard
& Poors. See the IFR Asia article
(CLICK HERE).
The last big Brazilian firm to go
bust was under the OGX massive umbrella,
owned by Eike Batista. Both firms
are likely to be scooped up by the
Chinese. Expect the investment to
be covered in USTreasury Bond payments.
The resource sector is littered with
new acquisitions conducted by the
Chinese. They are using their USTBonds
held in reserve like supermarket cash
on the metals counter and energy aisle.
The currency will find its way
in all types of cases back to the
sender, the USGovt or London
banks. It is part of the grand new
trend, called Indirect Exchange, a
manner of dumping the USTBonds.

Exxon Mobil has agreed to sell its majority stake in a Hong
Kong utility and a power storage firm
for a combined $3.4 billion. The energy
giant has spent a cool $33 billion
in the first nine months of 2013 on
production and exploration projects.
Under the deal, CLP Holdings will
assume control of Castle Peak, one
of Hong Kong's
main electricity providers, lifting
its stake to 70% in the process. They
will buy half of Exxon's holding for
HK$12 billion (=US$1.55 bn). The state-owned
China Southern Grid will buy the other
30% held by Exxon. The terms of the
deal have not yet been disclosed,
but a source indicated a price tag
also of HK$12 billion. CLP is backed
by the wealthy Kadoorie family, committed
to the electricity business in Hong Kong for over 100 years. See the Reuters article (CLICK HERE).
More USTBonds in the channel to dump
on the New York
and London
banks.

Goldman Sachs plans to resume continue negotiations to sell its metals warehousing
business, given the tough new exchange
rules in place. The potential buyers
are largely firms based outside the
United
States. The item
on the sale block is Metro Intl Trading
Services, which stores aluminum and
other metals for the London Metal
Exchange warehouse system. It has
been at the center of a controversy
that focuses on GSax delay tactics
to squeeze clients into paying higher
fees. Wall Street ownership of physical
commodity assets and warehouse management
is ripe with corruption. Over a dozen
parties have expressed an interest
in buying the business, according
to the Financial Times. They report
potential buyers as Chinese insurer
Ping An and China Minmetals. In addition,
the Brazilian bank named Grupo BTG
Pactual SA is also actively looking
at warehouse assets. See the Reuters
article (CLICK HERE).
More USTBonds in the channel to dump
on the New York
and London
banks.

China is maneuvering to secure tangible
assets in exchange for USTreasurys.
They pursue gold, commercial property,
retail malls, companies with residential
homes as assets, farmland, mines,
energy deposits, and port facilities.
They have gone shopping around the
world, on every continent. It is redemption
time. EuroRaj added a true interpretation,
"The secret is out, how
China
is silently conducting a global audit
by buying out long-term metal hedges
and acquiring warehouses and vaults.
Next come landlord inspections."

In a rhyming event, due to the US bank downgrades, Morgan
Stanley has been forced to sell its
commodities business unit to OAO Rosneft,
the giant Russian energy firm (twice
size of Exxon Mobil). Any sale would probably include TransMontaigne
Inc., a Denver-based petroleum and
chemical transportation company with
storage facilities. Morgan Stanley's
commodity business posted a return
on equity under 5% in 2012, the lowest
among its trading businesses. The
firm cut 10% of its workforce in the
division this year. It held talks
in 2012 with Qatar's giant sovereign wealth fund about selling
a stake in the business. The Wall
Street banks are under financial pressures
from insolvency, but also legal pressures
for market interference and overreach.
The world has stopped accepting USTreasurys
as collateral, one of their problems.
Worthless fake money does that. US banks are being forced
to sell many marginal and sometimes
valuable assets to stay alive in the
fiat world. See the Bloomberg article
(CLICK HERE).

◄$$$ THE CHINESE STRATEGY ON GOLD IS SIMPLE AND EFFECTIVE. $$$

The Chinese Govt is encouraging the people to buy gold for three reasons:

1)Investment in gold inhibits a common
path that would otherwise flow into
bubble markets like real estate and
equities. No energized gold trend
is an asset bubble, but rather an
enlarged safety valve with reservoir.

2)Gold provides a strong base to protect
the citizenry from price inflation
or other economic chaos, including
bank failures with associated account
losses. The stability insurance can
reduce the chances for civil unrest,
if economic problems ensue.

3)If the people ever wish to redeem
their gold bars, the Peoples Bank
of China is ready and willing
to soak up supply. The central bank
could easily increase its reserves
by stealth.

◄$$$ THE FINAL PHASE OF THE MASSIVE CHINA
& RUSSIA OIL DEAL IS COMING
TO A SUCCESSFUL CONCLUSION. AN ERA
OF DISTRUST AND UNEASY ALLIANCE WILL TRANSFORM INTO A GIGANTIC RESOURCE
AND ENERGY SUPPLY RELATIONSHIP WITH
TECHNOLOGY TRANSFER. REGARD THE NEW
ENERGY PACT AS A KEY PLANK TO THE
UPCOMING EURASIAN TRADE ZONE, WITH
MOSCOW
AND BEIJING SERVING AS ITS AXIS. $$$

The Russian leadership crew is crafty. They say what they mean, and mean what
they say. Much thorough introspection
and planning goes into their public
statements, like in a chess game.
So when Prime Minister Dmitry Medvedev
recently made a formal statement that
Russia
has nothing to fear from China,
it captured attention. The relationship
has been tenuous but constructive
in recent years, with caution but
progress. Anxieties over the so-called
Yellow Peril persist, extended from
the centuries of Mongol Horde conflicts.
The gnawing worries still center
upon potential mass migration by the
Chinese into the vast expanses of
Siberia and the Russian Far
East. A concern lingers that a stronger
China
may someday lead Russia
to become a mere appendage to the
Chinese economy by supplying it with
raw materials, thriving on the income
extending from the relationship.
But such is the nature of alliance,
mutualy benefit. The statement by
Medvedev signals that if indeed there
has been fear, it is no more so. The
fact that he chose to make the statement
from Chinese soil in an interview
with the Russian state television
is symbolic, a bridge made. Moreover,
the words were spoken on the tail
end of a productive visit to China, which the Xinhua news network had called
a gathering of enormous significance
to the further deepening of bilateral
cooperation.

The highlight of the visit by Medvedev was the mega energy deal signed by the
two countries. The significance is
redoubled by the timing as coincidental
with the visit by Prime Minister Manmohan
Singh to China.
The crux, Moscow
and Beijing are coming to the final stretch in their protracted negotiations
over a truly historic monstrously
large and hugely significant energy
deal. It will create a superpower
alliance. It centers upon the $trillion
contract to supply 38 billion cubic
meters of Russia gas annually to China over a 25-year period
or more. The final signature is within
sight, so it is told. The deal will
transform the Russian-Chinese strategic
partnership of coordination and cooperation
in the most profound manner. Some
perceive the cooperation between the
two superpowers as the post-modern
Mutually Assured Destruction in reverse
mode. The positive synergy is clear.
The heavy Chinese dependence on
Russian energy supplies and the prospects
of growing investments in Russian
supply chain out of Siberia for lumber,
copper, water, crude oil, natural
gas, even rare earth metals, makes
Beijing a major stakeholder in the
Russian partnership. The Kremlin
requires the investment income and
basic income stream for economic progress
and capital development for national
sustenance and economic vitality.
Conversely, China
is likely to grow dependent on the
high technology from Russia such as nuclear technology,
aviation, petro-chemicals, weapons,
and more. It is widely known that
China
is way down in the supply chain evolution.
The confirmation of a reform environment
is to come at the Chinese Plenum conference.
Truly, Russia is shedding its fear, as China is shedding its old
ways.

Clearly, Moscow is preparing to shed its fear and is positioning itself to tap
into the comprehensive and unprecedented
reforms that the Chinese leadership
is embarking on at next month's Plenum,
as evident from the remarks by President
Xi Jinping to foreign business executives
last week and by ranking Politburo
member Yu Zhengsheng in a speech over
the weekend at a forum to promote
relations with Taiwan. Read the Bloomberg
analysis of what to expect at at the
Chinese Plenum. See the Rediff Indian
Punchline article (CLICK HERE).

◄$$$ AN ENERGY COUP IN A EUROPEAN GAS DEAL IS IN THE MAKING BETWEEN TURKEY
AND UKRAINE,
BUT WITH RISK FROM RUSSIAN RETALIATION.
EUROPE REQUIRES
MORE ENERGY SUPPLY FROM GAS, INCLUDING
LNG. THEY MUST TREAT RUSSIA WITH RESPECT AND HONOR ITS CONCERNS OVER
UKRAINE. TURKEY HAS THE POTENTIAL TO
SERVE AS CRITICAL HUB FOR NEW MARGINAL
EUROPEAN SUPPLY. THE PIECES OF THE
EURASIAN TRADE ZONE ARE COMING TOGETHER.
$$$

A little known fact, Norway in June overtook Russia in total exports of natural gas to Europe. The remaining balance of European gas supply from Russia
comes through the vast network of
Ukraine
pipelines. Despite how Ukraine
controls the transit of 90% of the
gas that goes to the European market,
Russia consistently uses its gas exports
to Ukraine
to gain greater control of the Ukraine
transit system. Its pipeline network
is deemed a strategic asset that the
Kremlin lusts to control. The
leverage owes to the Ukrainian dependence
upon Russia
for 60% of its current gas consumption.
Many pieces are involved, much stress
at work, many players making decisions.

Stress has come to the entire system, Europe versus Russia,
with the stress point being Ukraine
as relay station to Europe.
The risk is retribution from a possible
energy squeeze by Russia,
which has a longstanding disagreement
with Ukraine over gas. If Russian wishes are not honored,
the Gazprom giant might make good
on threats to raise the price Ukraine
pays for natural gas. Some officials
do not rule out a price hike for the
European market as well, which obtains
nearly 40% of its gas from Russia. Any new deal between
a European player with Ukraine,
even Turkey,
should not be looked at as a business
opportunity on isolated terms. Long-term
view should be the priority, with
respect shown to Russia. The King of NatGas is Russia, something never to
be forgotten or overlooked. For
its part, Ukraine has been making progress
on shale and other unconventional
methods, as part of the Black Sea
Trust for Regional Cooperation (BST).
However, shale is a temporary solution
fraught with other risks like damage
to ground water systems. In the graphic,
notice huge supply from Russia
as red arrows, the bottleneck of supply
to Europe as
blue arrows, and significant gas fields
as yellow bars.

In the last five years, Europe's LNG import capacity has grown to reach a significant level.
At the same time, higher Liquefied
Natural Gas prices have been driven
by strong Japanese demand. Furthermore,
Asia offers a
higher LNG price, due to contracts
linked with crude oil supply. The
result is diverted supply from the
European market. An agreement
between Ukraine and Turkey
for the transit of LNG through the
Bosporus
Strait (gateway
to Black Sea)
would be a major lift for European
energy supply security. It would put
downward pressure on current LNG prices
due to the high demand and premium
paid in Asia, and would eventually
provide Europe
with cheap shale gas through a viable
alternative marketplace. It is an
idea developed by Robert Bensh, energy
advisor to Ukrainian Vice Prime Minister
Yuriy Boyko. He is managing director
of Pelicourt Ltd and senior advisor
for Cub Energy Inc, which operates
in both Ukraine
and Turkey.

The potential for LNG exports to Europe without a deal
between Turkey
and Ukraine
for LNG supply through the Bosporus
will fall flat. Without the deal, Russia
will continue to provide at least
30% of Europe's
natural gas through year 2023. Efforts
call for Europe
to tap the West Asian source. Some
conflict is seen by European energy
firms in the Mediterranean,
busy with platforms. An urge is given
to the European Union to use its bilateral
relations with all parties, inclu
ding Russia
and Turkey,
to contribute towards the emergence
of a cooperative security environment
in the Black Sea region. The challenge is difficult, the benefits great.
But foremost, the Russian source must
be respected and dealt with properly,
since it is the King of NatGas. Integration
of other African sources like from
Nigeria
might enter the EU equation. If core
and marginal concerns can be met,
a deal between Ukraine
and Turkey would represent a political
and economic coup of vast proportions,
Bensh believes. For Ukraine, LNG is the key to
energy independence. For Turkey,
LNG is the key to becoming one of
the most important energy hubs between
the Middle East and Europe.

In combination with the Trans-Anatolian Pipeline (TANAP), controlling the LNG
segment through the Black Sea would
give Turkey broader leverage than any other player in
Europe. The TANAP
will bring Azerbaijani gas from Shah
Deniz through Turkey
toward European markets. For both
Ukraine
and Turkey,
it would mean greater access to the
economic benefits of the European
Union, like income and technology
transfer. It would mean control over
Europe's LNG
market and a level of political leverage
over the continent for benefit. See
the Testosterone Pit article (CLICK
HERE).
As the Eurasian Trade Zone comes together,
the United States is not a player. It is stuck with
the failed strategy of shale gas.

◄$$$ RUSSIA AND UKRAINE JUST SIGNED AN IMPORTANT TRADE PACT. KIEV
LEADERS REJECTED A EUROPEAN UNION
OFFER. THE TILT GOES EAST, AS THE
EURASIAN TRADE ZONE COMES TOGETHER
AND SOLIDIFIES. UKRAINE IS A KEY SWING NATION. THE NEXT KEY SWING
NATION TO TILT EAST WILL BE TURKEY. $$$

Vladimir Putin of Russia and Viktor Yanukovich of Ukraine signed a deal, in
a curious sequence of events that
involved threats of retaliation but
ended with smiles. The deal was
hailed as a decision to define a civilization.
Ukraine
picked Russia
over the West. On the table sat an
Association Agreement and trade pact
with the European Union, an open invitation
to integration with the West.
On the same table sat a Russian offer
to join the Belarus-Kazakhstan-Russia
customs union. Last month John Lloyd
of Reuters wrote that if the Ukraine signed the EU pact,
a major state will move into the West's
sphere of influence. But it did not
happen. Ukraine
has chosen to decline the EU's offer
after Russia
imposed trade sanctions on the Ukraine
and threatened other economic consequences
if Kiev signed the deal. The Kremlin can sweeten the deal later. Most
people do not realize the enormity
of this decision, as even the story
received almost no attention in the
Western press. Momentum builds.

Ukraine was a prize asset for the United
States to lassoo,
a true thorn in Russia's
side. With the economic issues that
the EU and US face, yet another country
is tilting East, while formation of
a trade zone takes place slowly. The
American Empire is gradually being
lost in front of our eyes. As for
the EuroZone, this is a grand vote
of no confidence for the EUR as a
currency experiment. Big moves lie
ahead. Germany should soon realize
the futility of staying in the EuroZone
and subsidizing the Southern European
nations, even the broken states of
France
and Belgium. Turkey will be the next one
to tilt east explicitly. Within
six months the right wing parties
across Europe
will grab a significant voice at the
May 2014 EU elections. Just a matter
of time. See the Business Insider
article (CLICK HERE).
The Eurasian Trade Zone is coming
together, piece by piece, on several
fronts.

◄$$$ THE BRICS NATIONS ARE ON THE MOVE. THE EASTERN HEMISPHERE IS MOBILIZING,
WHILE THE WEST IS COLLAPSING AMIDST
GIANT DEFICITS, BANK INSOLVENCY, AND
BOND FRAUD. IMPORTANT PACTS ARE BEING
FORGED AMONG RUSSIA,
CHINA, AND INDIA. $$$

Chinese Premier Li Keqiang held talks with visiting Indian Prime Minister Manmohan
Singh in late October, to mark the
second time this year that the heads
of government of the two countries
have met. Premier Li visited India in May. The two sides signed nine agreements,
including a crucial Border Defense
Cooperation agreement, which promised
no usage of military capability against
the other side. Relations between
China
and India are important, since
they contain the largest populations
in the world, at 2.5 billion people
combined. They are both rapidly growing
economies, centers of capital expansion,
and locations of gold accumulation.
Agreements were made on trans-border
rivers to provide for expanded cooperation,
on roads & transport systems,
and on power equipment. See the BRICS
Post article (CLICK HERE).
The United
States will attack
any nation that crosses its path or
objectives.

The summit meeting between Russian president Vladimir Putin and Indian Prime
Minister Manmohan Singh in late October
took place at the crucial moment.
The decision of the USGovt to allocate
$1.6 billion in military assistance
to Pakistan sent a very clear message to the Indian
leaders. The Jackass view is that
Pakistan
stands between China
and India, thus the US puppet buffer must be supported and built.
The two BRICS partners of Russia
and India
reiterated their Special & Privileged
Strategic Partnership (PPIO). India will continue to forge ties with Russia. The Eastern Alliance continues to form. The USGovt actions are causing a
reaction of tighter bonds in the East,
as US leaders have been moving
into alliances with awkward partners,
such as the Muslim Brotherhood, the
Syrian jihadists, and the Pakistani
secret services connected to the Taliban.
At the summit in Moscow,
Putin and Singh reiterated India's
desire to be involved in preparations
for the Geneva-2 conference on Syria. Russia reaffirmed its strong support for India's bid to become a permanent
member of the United Nations Security
Council, complete with veto power.
The makeup of US, UK,
China,
and Russia always made sense, but not France.

The supply of Russian military weapons to India
will continue, although with some
bumps in the road like in the last
ten months. Delivery should arrive
before January on a large order of
235 additional Russian T-90 tanks,
67 Russian helicopters, and 6 MIG-29K
fighters. In 2012, Russia's
trade with India reached $11 billion, a level several times
less than Russia's
trade with China.
The first nuclear reactor at the Kudankulam
nuclear power plant, constructed in
the southernmost tip of the Indian
peninsula with the help of Russia, was due to start operations
two weeks ago. The second reactor
is supposed to go online for electricity
production in early 2014. The construction
of a natural gas pipeline from Russia
to India is seen as thorny and
complicated, with ecological challenges.
It would pass through Central Asian
states, including Afghanistan
and Pakistan.
See the BRICS Post aritcle (CLICK
HERE).
The Eurasian Trade Zone will feature
Russian & Chinese arms deals,
like powerful glue.

The BRICS Bank plans to reduce risks within the emerging market nations, with
an aggressive agenda. China and India have agreed to increase cooperation among
the five key nations so as to safeguard
common interests. India Prime Minister
Manmohan Singh cited the BRICS Development
Bank and the $100 billion Contingency
Reserve Arrangement as major efforts
to support trade and investment, certain
to reduce risks in emerging markets.
Singh confirmed that India and China have a vital stake in preserving an open,
integrated, and stable global trade
regime. He stated, "We are
in the midst of a significant and
ongoing transformation where both
political and economic power is being
diffused. A multi-polar world is emerging
but its contours are not yet clear.
Protectionist sentiments in the West
have increased and the global trading
regime may become fragmented by regional
arrangements among major countries."
His comment is a big nugget. See the
BRICS Post article (CLICK HERE).

◄$$$ THE STATE OF FLORIDA EXPORTS $8 BILLION PER YEAR IN GOLD, MOSTLY TO SWITZERLAND. THAT IS A LOT
OF SCRAP MARKET SALES, PLUS HOME SALES
IN REDEMPTION. $$$

According to the Florida Enterprise Report, gold rose from $50 million in 2010
to $7.0 billion in 2011, then to $8.0
billion in 2012, to become Florida's
top export. The destination is most
often to Switzerland,
without doubt to be refined into 100-oz
bars later shipped to China. The details of the
official report document cite Gold
(including Platinum Plated) unwrought,
semi-manufactured as the line item.
See the EFlorida article (CLICK HERE).
Think recycled jewelry and cash raised
to manage the wrecked economy, dragged
down by housing. Without doubt, many
living room private party sales are
involved. The Voice offered a quick
comment. He said, "Florida
is the prime gold scrap market in
North America.
The scrap market is fed by the jewelry
industry. The biggest market in the
Middle East is Saudi Arabia. Their scrap
is shipped to Dubai,
as in tons per month."

◄$$$ THE MONETARY INFLATION SPIGOT APPEARS TO HAVE CAUSED AN IMPORTANT
CHANNEL TO LEAK IN PRICE INFLATION.
WITNESS THE FINE ART COLLECTIBLES,
WHICH HAVE SEEN A 100% PRICE INCREASE
IN UNDER A YEAR. THE INFLATION FIRES
ARE BEING STOKED. WORD IS FILTERING
DOWN THROUGH SOCIETY OF HYPER INFLATION
WITHOUT END. $$$

Guests on the King World News have described price developments in the fine
art collectible market. Asian fund
manager Keith Barron discussed the
technical hyper-inflation in the
fine art market underway. Some fine
art pieces have gained an astonishing
100% in just the last six to eight
months. The rise is impressive
for many items going out the door
at auction houses. Regard the trend
as in anticipation of a coming Great
Inflation. Fund manager Michael Pento
is in full agreement. He believes
inflation created through a central
bank tends to go to the top 1% in
society. First, it goes to the major
banks, and then it goes to the very
wealthy. It serves as a precursor
to what will occur for the overall
inflation level of the USEconomy.
Pento sees the pathways into assets
like stocks, bonds, real estate, and
art. Later it will go down to food
and energy prices, which are creeping
up. Apart from the art price as
inflation hedge, Pento expects the
QE to Infinity like the Jackass.
He said, "This is a watershed
moment in the Fed's history. I have
been saying it for many, many months,
if not years, that the Fed's QE
program is without end. It is interminable.
Now we have the Federal Reserve admitting
that there is no limit, no dollar
amount restriction, as to how high
they will take the Fed's balance sheet."
See the King World News interview
(CLICK HERE)
and the FoxNews article (CLICK HERE).

Berkshire Hathaway disclosed on November 14th that it had made a signficant
$3.45 billion stake in Exxon Mobil.
The sizeable acquisition adds to its
roughly $107 billion portfolio of
stocks. Warren Buffett executed the
decision. Exxon Mobil is the world's
largest publicly traded energy company
with a market capitalization of $407
billion. The Berkshire stake represents less than 1% of the 4.4 billion outstanding
XOM shares. See the Wall Street Journal
article (CLICK HERE).
Whenever Buffet makes a large investment,
the interpretation usually comes naturally.
The move by the savvy iconic CEO
hints of a weak USDollar, for which
the oil firm serves as a currency
hedge, even a proxy for gold.
He is an ignoramus on technology and
gold, but he knows the economic forces
at work very well. Better described,
he pretends to be ignorant of gold,
in order to placate Wall Street.

## FAILURE, FRACTURES, FRAUD & FROTH

◄$$$ THE CABAL IS AN ORGANIZED SYNDICATE THAT HAS EXISTED FOR WELL OVER
150 YEARS, PROBABLY CENTURIES LONGER.
THE PLAN HAS BEEN IN
PLACE SINCE THE EARLY 1990 DECADE
TO DESTROY THE UNITED STATES, SINCE
IT IS THE CRADLE OF CAPITALISM AND
THE BEACON OF FREEDOM. THE ELITE WHO
WISH FOR A TOTALITARIAN
STATE DO NOT TOLERATE THE MODEL THAT AMERICA HAS PRESENTED. IT
IS BEING DESTROYED WITH MOTIVE, PLAN,
COORDINATION, AND PURPOSE. $$$

Former USFed chairman Greenspan, President (Papa) Bush, President Clinton, Treasury
Secretaries Rubin and Paulson, JPMorgan
CEO Dimon, and Goldman Sachs CEO Blankfein
are the chief visible agents for the
US
destruction, preparing the way for
the global fascist state led by bankers.
The hidden parts are the news networks,
the large pharamaceutical firms, and
USGovt security agencies, which in
my view have bought into the Global
Fascism plan with narcotics money.
The entry fee paid by Langley must be in the $trillions. It is their grand coordinated plan,
with Satanic roots. The antidote is
Gold mixed with free markets and true
representative governments, aided
by free press sunlight. All these
antidotes tend to be missing in egregious
fashion. Therefore the destruction
continues apace. Paul Yusem, the Gold
& Silver Analyst, has outlined
the formula for destruction of a nation.
If to follow the prescription, their
plan is on schedule. The cabal is
trying to wreck the United States in order to
install a global totalitarian government
run by fear, control, intolerance,
and violence. The orderly procedure
has been methodical.

1)Wipe out the middle class, starting
with removal of home equity, which
has served as their protection from
inflation.

2)Thin out the military brass at the
highest levels, by dismissing any
potential senior commanding officers
who might organize a coup d'etat.

3)Weaken the economy with extensive
socialist programs that reward the
idle and malingerers, and place a
burden on the productive.

4)Inflate the monetary system until
capital is drained extensively, which
will disable the job producing engines
by forcibly removing the profit potential.

5)Prevent escape routes for the vast
majority of the population by crushing
gold and silver, discouraging its
ownership with propaganda on lack
of value.

6)Sell off as much national gold reserves
as possible in order to remove any
potential recovery with sound money,
disabling any economic recovery.

7)Instill a culture of corruption, theft,
and depravity at the top of the political
and banking class, which is permitted
to filter down into the society, thus
encouraging the world to isolate the
nation as a plague.

The cabal will continue to ply its central bank destruction. The appointment
of Janet Yellen will assure a continuation
in seamless monetary policy. The Jackass
had at one time wondered if Yellen
would submit well to cartoon mockery
and related caricatures. Of course
she will. Notice the new and improved
broom and updated satchel of cash
to dispense. Her QE volume will double
during year 2014. The irony is thick,
since she opposed many policies that
resulted in systemic breakdown, and
her recognized siren warnings were
largely ignored.

◄$$$ THE KAHN IMF STORY REVISITED, AS IT IS VERY DANGEROUS TO CROSS THE
ANGLO BANKER MASTERS. DOMINIQUE STRAUS-KAHN
OPENLY DISCUSSED THE ABSENCE OF THE
USGOVT GOLD RESERVES FROM HIS OFFICE.
THEN SUDDENLY HE WAS IN THE NEWS ON
SPURIOUS ALLEGATIONS, LOST HIS JOB,
THE CHARGES LATER DROPPED. THE POST
WAS FILLED WITH A BETTER TEAM PLAYER.
$$$

Dominique Straus-Kahn began to express grave doubts whether the US Federal Reserve actually held the 8044 tons
of gold claims as USGovt gold reserves.
He brought unwanted attention to the
US
finance team controllers. The former
Intl Monetary Fund director was on
record to demand an independent audit
of the USFed gold back in 1978. The
incident related to the USGovt refusal
to deliver 191 tons of gold agreed
to the IMF under its Articles of Agreement.
The project was signed by the Executive
Board in April of that year, the US
being the lead member. The purpose
was to support Special Drawing Rights
issuance, the cooky basket of major
currencies used by the fund in its
accounting and project dispensations.
DSKahn repeated his demand for
a US Gold audit in early 2011, at
a critical time of ramped up hyper
monetary inflation of the USDollar
and dependence for USGovt debt finance.
Suddenly, before he could find transportation
on the return trip to Paris,
he was hit by a bizarre hotel sex
scandal during his stay in Manhattan, and abruptly forced to resign. The Russians had a role,
which demonstrates the global game
being played out. Straus-Kahn had
been shown a secret Russian intelligence
report prepared for President Vladimir
Putin in which rogue CIA agents revealed
that the US Federal Reserve had no
gold reserves. The central bank
holds paper certificates worth nothing,
backed by nothing, their vaults filled
with Rubin Thank You Notes (special
IOU cards). The USFed engages in a
constant stream of lies. See the Silver
Doctors article (CLICK HERE).

Some find it ironic or coincidental the sequence of events. The May 2011 incident
involving Kahn at a New York hotel included very strange display of
evidence, but circumstances followed
with a USGovt debt downgrade in August
2011. Perhaps the Standard & Poors
analysts got wind of the absent gold
with some reliable evidence provided
privately. The entire sex case was
hokey from the start. The Haitian
woman was not considered credible,
nor was the evidence convincing when
the prosecution door was opened. The
prosecutors filed a motion to drop
all charges against Straus-Kahn after
completing a lengthy professional
investigation. The mission was accomplished
since he was removed from his IMF
post. He spoke no further about matters
on gold reserves. The case was dropped,
DSKahn cleared of all wrongdoing.
His press conference in New
York City was canceled abruptly when
a freak earthquake hit the city. It
would be difficult to write a more
absurd Hollywood
movie script. The script could have
settled for child pornography on the
DSK personal computer, a popular smear
used by the FBI and Homeland Security
thugs. The hotel rape with torn maid
uniform was a bit more juicy and salacious.
The bad man should keep his hands
and other inflatable parts off the
young woman. That the victim was a
cokehead might not have had a bearing
on the case, just speculation.

◄$$$ THE OBAMACARE WEBSITE CONTRACT WENT TO A COMPANY RUN BY A MICHELE
OBAMA COLLEGE CLASSMATE. THE CONTRACT
WAS WON UNDER THE NO-BID SWEET DEAL
SCENARIO. JUST A COINCIDENCE THE RELATIONSHIP,
AND JUST BAD LUCK THE BROKEN WEBSITE.
$$$

First Lady Michelle Obama attended Princeton Univ. Her classmate was a top executive at the company that was given
the contract to build the failed ObamaCare
website. To say won the contract would
be misleading. Toni Townes-Whitley
(class '85) is senior vice president
at CGI Federal, which earned the no-bid
contract to build the $678 million
ObamaCare enrollment on the Healthcare.gov
website. CGI Federal is the US
subsidary of a Canadian company, for
a little added intrigue. Townes-Whitley
and her Princeton
classmate Michelle Obama are both
members of the Assn of Black Princeton
Alumni. Toni Townes is a one-time
policy analyst with the General Accounting
Office and previously served in the
Peace Corps in Gabon,
West Africa. Her decision to return to work after six years of raising
children was applauded by a Princeton
alumni publication in 1998. Too bad
she is incompetent. George Schindler
became an Obama 2012 campaign donor
after his company gained the ObamaCare
website contract. He is the president
for the US
& Canada
regions for the Canadian-based CGI
Group. The Jackass sure would like
to glance over the college transcripts
for Michele and Toni, to check their
courses completed and grades.

Amidst all the technical snafus, incompetence of website design, another new
curious problem has emerged. The
website has a childlike architecture.
It does not have the robust power
to handle heavy traffic. It cannot
properly merge the incompatible nature
of diverse systems from the USGovt,
which must merge for proper function.
The designers did not adequately test
the site before launch. In early active
runs, countless disconnections and
failed connections. Yet they launched
the website anyway. Atop all these
shortcomings, up to 20% of Americans
will not be in a position to participate
with the required Mickey Mouse system
of national health care. Some will
not be comfortable with online registration,
distrustful of the faceless procedure,
while others might not possess the
internet basic ability to accomplish
the task. However, the system must
make at times a complicated decision.
The tax situation for some citizens
might be too complicated for the website
to determine eligibility for subsidies.
Many complaints address the insurance
contract design by lawmakers, rather
than the hack website designers. See
the Huffington Post article (CLICK
HERE).

Incredibly, President Obama has declared that 100 million Americans have successfully
enrolled. He is disconnected from
reality, and in need of special medical
attention, perhaps psychiatric attention.
The weary leader made his gaffe during
the conference call hosted by Organizing
For Action that permitted 200 thousand
people to listen. So plenty of witnesses
to a delusional White House occupant.
See the UK Daily Mail article (CLICK
HERE).
A wise colleague once advised the
Jackass in 1984 never to stand in
the way of a man in the middle of
self-destruction. The advice was heeded,
and a horrendous manager at a previous
large corporation (my employer) was
a sunk wreck two years later. It is
a long story.

Yet another scandal has emerged from the health care system nightmare on Elm Street. A cabinet member is being summoned to explain $2 billion
in curious Coop loans related to the
bizarre contraption called ObamaC
are. Several leading members of
Congress are requesting that Health
& Human Services Secretary Kathleen
Sebelius explain the $1.98 billion
in taxpayer money loaned to various
firms to kickstart the various health
insurance Coops. The query will
include questions whether the taxpayers
will ever be repaid, or the grants
to be grafted gifts. Under the dutiful
but loyal watch of Sibelius, one fiasco
has occurred after another. A formal
letter by signed four ranking Senators
and one Representative was delivered
to the embattled HHS Secy. At issue
is the slush fund conduit called Consumer
Operated & Oriented Plans, which
has been used to dispense massive
sums with dubious results. An inspector
general produced a report that found
11 of 16 Coops exhausted their funds
in startup costs before any system
was operational. They reek of
fraud and phony costs. One of the
Coop plans was denied a license by
the state of Vermont
to operate, but received funds. See
the WND News article (CLICK HERE).
A closer look will surely find many
Obama supporters own such Coops, with
little or no activity.

As footnote, the Jackass considers EmBalmaCare to be managed death and official
obstruction of cancer treatment to
elders, and of joint replacement to
elders. Besides, joint replacement
might be a luxury for a nation on
the doorstep to the Third
World that lacks any semblance of
robust savings. The national program
is designed to be a grand hospice
and brick wall. Read the fine print
on age limits. Too many reports circulate
that implanted ID chips will be a
forced requirement in the near future.
It is doubtful that even RFID chips
will wake up the American public,
the worst informed and sleepiest of
any modern industrial nation in world
history. Another gem graphic art work
by Pawel Kuczynski to depict the national
monument symbol, the only visible
part being Pinocchio's nose. It symbolizes
the assembly of liars, not the phallic
of the nation's forefather.

A bizarre detail is important. In addition to being replete consummate liars,
the USCongress is incompetent in overseeing
the bungling cronyism by the arrogant
leader with the White House address.
The Obama Admin Cabinet and senior
assistants have the lowest percentage
of business experience of any presidential
administration in history, around
five times less than the next lowest.
Their percentage is around 5% with
business experience, truly unimpressive
for an administration seeking to produce
jobs. The previous low for cabinets
was around 25%. Ideology, not quality
or integrity, is the calling card
of this socialist failure gang. Expect
further snafus, breakdowns, failures,
and weird events later on with the
Affordable Care Act with its poorly
constructed, worse designed database
system. Possibly foreigners will sign
up from other countries, or hacking
of information will occur, or falsified
records will be easily inserted, and
more, after their access is not blocked.
A colossal mess cometh. My expectation
is for fraud worse than Medicare fake
billings to take place throughout
the upcoming newly installed embryonic
system.

◄$$$ FORBES MAGAZINE HAS CALLED FOR THE IMPEACHMENT OF PRESIDENT OBAMA
FOR WANTON CONTEMPT FOR THE CONSTITUTION.
ANY ACTION SHOULD INCLUDE THE WALL STREET BANKS AND DEFENSE CONTRACTORS. THE MARCH TO THE FASCIST
STATE MUST
BE INTERRUPTED, IF THE NATION IS TO
AVOID THE THIRD WORLD. $$$

Forbes Magazine is not a two-bit slouch journal. It is highly respected. Neither
is it a radical right wing rag, with
no demonstrating partisan bias. The
magazine has called for the impeachment
of President Barack Obama for contempt
of the US Constitution. The nearly
five years of disregard and disrespect
weighs heavily on the nation. The
skein of deeper executive orders are
a design for a fascist state, for
a deeply abusive totalitarian state.
Forbes claims his tyrannical disregard
for the US Constitution has sent the
nation to the brink of a Banana Republic.
Forbes wrote, "The shocking
fact is that our whole system of representative
government depends on it being led
by an individual who believes in it;
who thinks it is valuable; who believes
that a government dedicated to the
protection of individual rights is
a noble ideal. What if he does not?"
They capture the essence.
However, two important points must
be made. First, the bankers should
be included in the indictment, with
criminal charges for multi-$trillion
fraud and RICO racketeering. The big
bank assets must be confiscated as
criminal ill-gotten gains. They are
running narco money laundering into
every major bank, combined with diverse
bond fraud and constant insider trading
in the financial markets. The criminal
charges must include some key defense
weapons firms, who are complicit in
narcotics trafficking in the private
corporate jets, even fraudulent billing
turned commonplace.

Second, the entire USCongress should be dissolved if it does not rescind the
Patriot Act. The act served as a Gestapo
Manifesto that eradicated rights and
essentially tore the Constitution
up into pieces. Bush II and Obama
have systemically built the Fascist
Nation as they dismantled the entire
Bill of Rights. The United States has gone back 600 years to before
the Magna Carta. If the President
is to be accused for trampling on
the Constitution, then the USCongress
should be challenged for dismissing
the same Constitution. See the Silver
Doctors article (CLICK HERE).

Rumors are brisk and common about the South
Carolina nuclear device gone missing,
and possibly being detonated 500 miles
off the coast. Perhaps the motive
for firing several USMilitary Generals
was motivated by their disobedience.
The story told is that they refused
to explode it in the South
Carolina area, as part of a false
flag event, to be followed by martial
law. The United States is treading
on very dangerous ground, if the story
is even half true. Obviously, the
entire publication is posturing, but
it points to an important perceptual
change for the US
nation, with open challenge by internal
institutions. A prominent contact
replied, "Keep on dreaming.
All this is verbal and mental masturbation
and nothing else. Since when to the
sheep run the Shepard's dogs? It the
other wayaround." The schism
within the United States and its highest
levels is becoming very clear. Be
clear that impeachment calls are mere
rattling, but important rattling.

◄$$$ CORRUPTION HAS COME IN SWEET DEALS FOR USGOVT LEADERS IN THE DISPOSITION
OF US-POSTAL SERVICE PROPERTY. FEINSTEIN
AND HER HUSBAND ARE IN LINE FOR A
$1 BILLION PERSONAL GAIN. THE BROKER
PRIVILEGE CAME WITHOUT A BID PROCESS.
$$$

The USCongress collusion is mindboggling. The USGovt has entered into a contract
with a real estate firm to sell 56
buildings that currently house US
Post Offices. The government has decided
it no longer needs these buildings,
most of which are located on excellent
locations across the country. The
sale of these properties will fetch
about $19 billion. A regular real
estate commission will be paid to
the company that was given the exclusive
listing for handling the sales, without
a bidding process. The company
is CRI, which belongs to a man named
Richard Blum, the husband of Senator
Dianne Feinstein. Most voters
and many of the government people
who approved the deal have not made
the connection between the two persons,
since different last names appear.
Senator Feinstein and her husband
stand to make a fortune from these
transactions, estimated at between
$950 million and $1.1 billion. CRI
will be making a minimum of 3% and
as much as 6% commission on each and
every sale. The company will function
as the sole broker on the sale, to
keep America
competitive and strong, surely to
defend liberty (to steal) also. No
mainstream media entity has mentioned
the conflict of interest and obvious
corruption on the sale of $billions
worth of public assets. They were
purchased with US taxpayers funds
with very low debt. The net proceeds
of the sales will go back to the USPS,
an organization that has lost $117
billion in the past ten years. Thus
the sale proceeds will keep the wildly
unprofitable firm going a few more
years. See the Truth or Fiction article
(CLICK HERE)
and the Snopes verification of the
story (CLICK HERE).

◄$$$ THE BAKKEN OIL REGION IS IN SEVERE OUTPUT DECLINE, DESPITE A MASSIVE
RISE IN WELL COUNT. THE BAKKEN DRILLING
FRENZY GIVES THE ILLUSION OF SUSTAINABLE
GROWTH. THE NET DECLINE RATE IS ACCELERATING,
AND SO IS THE RISE IN NEW WELLS DRILLED.
IT IS A PONZI SCHEME, THE DETAILS
EASY TO SEE. THE MARGINAL WELLS ARE
IN LINE NEXT TO ADD SUPPLY IN DIMINISHING
VOLUME. MOTHER NATURE IS AN OPPONENT
TO PONZIS. $$$

The EIA & US Energy Info Agency are providing some good information from
which to make conclusions, regarding
the US-based individual shale oil
& gas ventures. The Bakken story
has a dark side that disputes the
big production salvation story. The
daily decline rate in the Bakken region
from their existing oil wells has
reached a staggering 63,000 barrels
per day. Every day the existing
wells in the Bakken region pump oil,
but the overall output is declining
at 63,000 barrels per day (bpd). The
decline rate started to accelerate
downward after 2011, when the average
daily decline was only 20,000 bpd.
In less than 3 years, the decline
has more than tripled. The regional
project has finite lifespan remaining.

The Bakken drilling frenzy gives the illusion of growth, under the cloud of
confusion from heavy activity. However
it is neither stable nor sustainable.
The typical American believes the
propaganda put forth by the USGovt,
that the nation has ample hidden oil
& gas resources to be easily tapped.
A flurry of activity is to be seen,
for certain. The negative side screams
of a temporary rush that will end
very soon, with no national energy
independence. The public is told about
the huge increases in production.
The oil production continues to
increase in the Bakken region only
as a result of the massive amount
of new wells added during the frenzy.
The chart below reveals the illusion
of this sustainable growth. Soon the
opportunity to expand the wells in
production will halt, since the region
is finite and limited. In a couple
years, only the pathetic and hopeless
wells will be drilled, with little
promise of output.

The Bakken production data comes from the North Dakota
wells at the heart of the large oil
deposit. It is large, but not giant.
The graph includes the Montana output also. Together they reveal the huge
increase in oil wells required to
grow production. The North
Dakota story is most telling. In 2008,
the Bakken in North Dakota (ND) only
had 479 producing wells. Fast forward
five year to see at last count in
September, the Bakken had 6447 wells
to pull the production. The total
output is up to 867,123 barrels of
oil per day. Therefore, the energy
companies drilling and producing oil
in the Bakken must keep increasing
wells every single month in order
to offset the huge 63,000 bpd decline.
For example, consider the September
ND data. An additional 135 new wells
(ND) were in production mode in September
versus August. The incremental addition
to oil output was 20,589 bpd of production.
New wells cannot halt the decline
in aggregate output. If only 100 new
wells were added that month, the production
would have remained flat or possibly
declined for September. The story
in the press would have been altered
on the down side. Lastly, the best
and most productive wells are exploited
in the initial rounds, leaving the
marginal wells for later. So two factors
will contribute to a sudden aggregate
output decline, 1) exhausting areas
for any new wells, 2) remaining wells
are the least productive. In the next
year or two, the peak will be reached,
and the subsequent bust will finally
arrive. All factors explain a Ponzi
scheme. See the SRS Rocco article
(CLICK HERE).
Steve is a Hat Trick Letter subscriber
and colleague.

◄$$$ FROTHY STOCK INFLOWS SIGNAL A TOP, AS NAIVE RETAIL INVESTORS BUY
THE PHONY STOCK VALUATIONS. IT IS
ALL DUE TO THE USFED EASY MONEY POLICY,
NOT AN ECONOMIC RECOVERY. EVEN THE
FINANCIAL PRESS ACKNOWLEDGES THE DEPENDENCE,
THE USFED SPIGOT CITED OFTEN. THE
MONEY INCOMING THAT ENTERS STOCK FUNDS
ARE AT ALMOST 15:1 IN RATIO TO BOND
FUNDS. $$$

The Bank of America analyst Michael Hartnett cited the frothy conditions of
the US stock market. The equity fund inflows saw a
third consecutive week of heavy volume,
the week of November 13th at $12.4
billion. Stocks rule the waterlogged
roost, the indirect beneficiary of
the USFed easy money. Year to date
for 2013, the stock funds have seen
$231 billion of inflows, versus a
mere trickle of $16 billion for bond
funds. The public has distrust for
the obviously supported bonds.
They do not see the indirect stock
support and froth. Other people giving
stern warning about the stock bubble
besides BOA are JPMorgan, Bill Gross
of PIMCO, Larry Fink of Blackstone,
and David Einhorn. One can be absolutely
certain that the alert vigilant watchdog
USFed will do absolutely nothing,
except possibly talk about the recovery
that does not exist. No recovery can
happen while ZIRP enforces 0% and
while QE permits hyper monetary inflation,
the official USFed policy. Notice
the opposite directions for stock
inflows (up) versus bond inflows (down).
See the Zero Hedge article (CLICK
HERE).
Once more the public buys the bubble
with enthusiasm.

◄$$$ THE RUSSIAN PARLIAMENT IS WORKING TOWARD AN OFFICIAL BAN OF USDOLLAR
BASED BANK ACCOUNTS. THE PHASEOUT
CALLS FOR ONE YEAR. THE RATIONALE
CITED IS UNCHECKED INFLATION BY THE
UNITED STATES. THE BILL IS WORTH MONITORING,
SINCE IT COULD BECOME A TREND IN FOREIGN
LANDS. $$$

The story is of a preliminary law in the Russian Duma Parliament, a drafted
piece of legislation in progress.
The law proposed by Mikhail Degtyarev
would prohibit movement of USDollars
within Russia and their storage.
The Russian citizens would be required
within one year to close their existing
USD accounts in Russian banks, to
delete all the data records, and to
convert accounts plus cash to Rubles.
Provisions would exist to close all
accounts automatically after one year.
Cash found by the police, customs,
tax authorities, border guards, or
security agencies would be seized.
Some reimbursement would be made on
seized funds within 30 days, as in
conversion to Rubles. Securing USDollars
would become difficult to come by,
with a requirement to prove need,
such as for traveling abroad. Of the
50 most popular destinations for Russian
citizens abroad, only 11 seem to need
to hold USDollars when traveling.

The stated reason for the rule is actually that the free flow of Dollars in
the United States prevents the Russian Ruble from
becoming a full fledged global reserve
currency. The practice by many
Russians to keep their savings in
USDollars is considered dangerous
for the country. The bill's authors
actually stated an expectation for
the collapse of the USDollar system
by year 2017, if the US national debt continues at its current pace.
A restructuring of the debt would
be expected to follow. Therefore,
the affected countries need to rid
themselves of USD dependence. The
Parliament prefers to avoid having
to bail out its citizens holding USDollars,
a tremendous foreseen expense. Apologies
for any minor error in detail, since
the translation to English was very
poor. See the Washington Times article (CLICK HERE)
and the RBC article in Russian (CLICK
HERE).

◄$$$ THE CHINESE CENTRAL BANK WILL NO LONGER INCREASE RESERVES BASED IN
USDOLLAR DENOMINATED BONDS. IT IS
DECLARED NOT IN CHINA'S
INTEREST. THE TURNING POINT HAS COME.
CHINA STRIVES TO PUSH THE YUAN AS GLOBAL RESERVE
CURRENCY, STARTING WITH TRADE STANDARD
PAYMENT MEDIUM. THE YUAN EXCHANGE
RATE WILL RISE. $$$

The Peoples Bank of China will not increase its
foreign currency holdings, a back
door announcement that the Middle
Kingdom will rein in USDollar purchases. Implicit is the permitted Chinese
Yuan appreciation. Deputy governor
Yi Gang of the central bank said,
"It is no longer in China's
favor to accumulate foreign exchange
reserves." The rest of the
statement pales by comparison. The
monetary authority will end normal
intervention in the FOREX currency
market. Expect the Yuan daily trading
range to grow wider, the official
hinted. It is an off-hand way of saying
the Yuan exchange rate will be permitted
finally to rise. The Chinese Economy
will benefit from cheaper imports.
The Western Economies will see higher
import prices. China's
FOREX reserves surged $166 billion
in the third quarter to reach a record
$3.66 trillion, more than triple those
of any other country. Incredibly,
their reserves exceed the Gross Domestic
Product of Germany, Europe's
largest economy. Decreasing the influence
and accumulation of the USDollar is
a milestone toward China's
2015 goal to float its currency with
full convertibility. See the Business
Week article (CLICK HERE).

## PETRO-DOLLAR SHIFTING SANDS

◄$$$ GLOBAL TALKS ARE UNDERWAY FOR BOTH DEALING WITH IRAN
WITHOUT SANCTIONS AND MOVEMENT TOWARD
A CURRENCY RESET. THE SECOND ROUND
OF SUMMIT TALKS HAVE MADE SOME IMPORTANT PROGRESS.
WHEN IT ARRIVES, THE RESET WILL CENTER UPON GOLD. THE CHINESE WILL USE EXTRAORDINARY MEANS TO KEEP
THE UNITED STATES PROPPED, SO THEY
CAN REDEEM OVER $1 TRILLION IN USTREASURYS.
IF THE USGOVT MUST BECOME A CHINESE
PUPPET, THEN SO BE IT. THE HIDDEN
HAND WILL BE DIFFICULT TO DISGUISE
AND CONCEAL. THE SHIFTING SANDS INDICATE
LESS AMERICAN POWER, INFLUENCE, AND
PRESTIGE, AND MORE CHINESE POWER,
INFLUENCE, AND OPPORTUNITY.
$$$

Some firm impressions are made. Important meetings are in progress, but their
purpose is broader than reported.
The Iran
Nuclear Talks are a proxy for financial
accord to put down the USMilitary
defense of the USDollar, since the
Petro-Dollar has been declared dead
behind closed doors. With the
discarded USDollar relationship with
Saudi crude oil, new rules are required,
including the huge offsetting forces
on pointed nuclear weapons. The
Global Reset is the marquee name publicly
for the Return of Gold Standard, but
to be executed in trade settlement,
not FOREX currencies. The US
will deceive all the way to the Third
World, unless it begins to cooperate
in good faith. The signals will be
very confusing. Expect some big Western
banks to enter failure and go under,
and some sovereign bonds also to enter
default and go kaput. These two failure
events are unavoidable upon reset,
whether leading into it or following
it. China will take extraordinary measures to keep
the USS America (aka Titanic) afloat.
They wish to drain it of assets, resources,
and whatever else they can in order
to enjoy much greater bond redemptions.

Wall Street has enjoyed a direct line for toxic bond redemption, but China does not. It makes no sense in letting the
United States be destroyed when it
can be propped, supported, and nourished
a little, with the motive to facilitate
blood drainage, much like a aged gladiator
tied to a rack. Therefore the Chinese
must make pacts with the castle dwellers
who want the US to turn into a totalitarian state. It will
be pushed in that direction under
Chinese guidance and command. They
have an urgent need to slowly unload
recent USTBills and older legacy USTBonds
from acquisitions. The WashingtonDC
crowd dismisses bonds held from the
1930 decade, but Beijing
emphatically does not. Since none
of their significant USTreasurys position
contains securities maturing over
two years, they require at least two
years of time. China has two choices, either
write off all the USTBonds or keep
the emaciated debilitated Uncle Sam
propped to withdraw his capital. A
source in Costa Rica with a strong
reliable British secret service contact
believes the Chinese will drain the
US dry over several years, the hidden
props to be magnificent, some already
visible, since they do not want either
to discard their US$-based reserves
or to lose their US customer in trade
export. The next increase in USFed
bond purchases (QE to Infinity) will
be quite interesting to watch, both
from how sheep react, and how the
mainstream press attempts to explain
its necessity and wisdom. It will
be predominantly for Chinese benefit.

Quick update. The Geneva talks went very well with some important agreements made concrete.
It is too early to digest the information.
However, The Voice has a contact whose
colleague was present at the talks.
The delegates from the United
States and its
small control room nation ally were
both embarrassed and silenced. Guido
Westerwelle was described as a very
savvy man to achieve the accord, even
though he represented a caretaker
government in Berlin.
It is reported that Kerry (US Secy
State) tried to intimidate Westerwelle
without success. The Jackass wonders
how the nuclear deal might pave the
way for a financial deal next very
soon, as in the Global Currency Reset
and greased path to a Gold Standard
in some form.

◄$$$ CHINA FIRED A SHOT ACROSS
THE PETRODOLLAR BOW. STRAIN HAS COME
TO THE US-SAUDI RELATIONS. ATTEMPTS
AT DETENTE WITH IRAN
HAVE MADE MORE SOUR THE US-ARAB
RELATIONS. THE SHANGHAI
FUTURES EXCHANGE MAY PRICE CRUDE OIL
FUTURES IN YUAN. THE PETRO-DOLLAR
IS SUFFERING SEVERE CORROSION. IT
WILL UNDERGO DEMISE. $$$

The US crude oil demand might be met by the shale
revolution for a while, but the influence
of Saudi oil is rapidly declining.
The false sense of comfort might
lead to a critical error in discarding
the Petro-Dollar that centers upon
Saudi oil sales in USDollar terms.
The USGovt gave the cold shoulder
to Saudi
Arabia and Qatar
over the Syrian debacle, then turned
its back on the Saudi regime when
making overtures to bring an end to
icy relations with Iran,
all done over the stern objections
of Israel and the Saudi lobby. The shifting commodity
winds and the political arguments
conducted on the global stage have
put stress on the USDollar's biggest
pillar, upon which the currency's
reserve status rests. Until recently,
the Petro-Dollar has made the USD
the only currency in which most nations
have transacted toward energy purchase.
The global banking reserves foundation
system has rested on the USTreasury
Bond pillars. Diversification will
pick up great speed. The USFed
will double and triple its QE volume
to handle the USTBond dumping, as
manifested in the great backfire from
the Petro-Dollar demise. Expect
change soon, as forecasted by the
Jackass over a year ago.

The Shanghai Futures Exchange is considering a price mechanism in its crude
oil futures contract in Yuan terms. The bourse is speeding up preparatory
work to secure regulatory approvals.
Regard such a maneuver as extremely
important damage to undermine the
Petro-Dollar foundation, and an open
invitation to the Saudis to build
bridges to China.
The Saudis will turn their back in
like manner to the United States, each step irreversible.
See the Zero Hedge articl (CLICK HERE).
Keep in mind a summary. The Saudis
feel betrayed by the Americans, as
the relationship has grown old and
tired. The royals have come up against
a firm Russian brick wall in a military
confrontation over Syria, with feisty exchanges and intransigent
Kremlin actions. Following betrayal
and resistance, the Saudis will build
new links and mechanisms to manage
the transition. They will fall into
the Chinese hands easily, in the midst
of a power vacuum. Expect more
Chinese Yuan to circulate inside Saudi
Arabia, with
giant projects and payments forced
by Beijing for crude oil. The Chinese surpassed the United
States recently
in crude oil imports, and will dictate
terms. On an increasing basis, Chinese
warships are seen in the Persian
Gulf area. They signal an end to the
Petro-Dollar. The term Petro-Yuan
has been spotted on editorial fields.
The bigger unspoken challenge might
be to maintain petroleum engineering
with less Western expertise on the
ground.

◄$$$ GEOPOLITICAL POWER GAMES HAVE MIXED WITH HIGH FINANCE AND MAJOR NATION
CLASHES. EXPECT THE PETRO-DOLLAR TO
FADE AWAY SLOWLY BUT WITH A POWERFUL
GRADUAL EFFECT AND FAR REACHING IMPACT.
THE US-SAUDI CRACKUP HAS REACHED A
DRAMATIC TIPPING POINT. THE SAUDIS
ARE TURNING AWAY FROM THE UNITED STATES
AS PARTNER AND PROTECTOR. THE RIFT
WITH SAUDI ARABIA IS GROWING.
THE HOUSE OF SAUD IS ON THE VERGE
OF PIVOTING TO CHINA, AFTER HITTING A RUSSIAN WALL. $$$

Since the cowering yet peaceful response by the USGovt on the Syrian battle
front, the United States has seen a strange
uneasy friction with its Saudi ally.
The Saudis have severed diplomatic
ties with the US.
With the relations cut off, some negative
momentum has begun to develop. It
could go out of control. Any successful
nuclear talks with Iran, wherein Tehran is granted the right for nuclear enrichment in pursuit of power
generation, would certainly anger
the Saudis further. Most critical
implications pertain to the continued
reliance upon the Petro-Dollar in
the oil trade, and upon the USMilitary
for security protection in the Persian
Gulf. The pact has served the
two nations well since 1974, called
the Grand Oil Surplus Recycle and
engineered by Henry Kissinger. The
US benefited from the required sale of OPEC crude
oil in US$ terms, which has the extremely
important (not well understood) consequence
of major nations of the world storing
their reserves in USTreasury Bonds.
The Saudis benefited from the protection,
as the royals could continue to steal
the national oil wealth and claim
it as private royal property. The
entire arrangement is under new tacit
renegotiation at global tables with
broad attendance, and curiously the
US voice squelched. Watch for the emergence of
the Petro-Yuan very soon, if not already.
The term has been spotted in the financial
press on a few occasions, with some
surprise. Only internet journals state
the extreme risk, tying factors together.

The financial press has caught wind of the enormity of the situation, but not
much in the mainstream press where
the Petro-Dollar is assumed part
of the global landscape. The shock
from its removal, elimination, and
dismantlement will be enough to cause
financial earthquakes and countless
tremors. Keep in mind that in
the current year, China surpassed the United States as the biggest oil importer. The
Western press is replete with stories
in coverage. See the UK Daily Mail
article for the Saudi diplomatic riff
(CLICK HERE).
See the Economic Collapse article
for the Petro-Dollar threat (CLICK
HERE).
See the Reuters article for the gradual
inevitable shift away from the United States (CLICK
HERE).
See the Washington Post articles,
one for the Saudi tipping point implications
(CLICK HERE),
the other with direct discussion of
the tilt toward China (CLICK HERE).
See the UK Telegraph article on the
great Saudi gamble (CLICK HERE).
See the Zero Hedge article on the
risk to global USTreasury Bond reserves
management (CLICK HERE).
The internal problems that the Saudi
Royals must manage, such as with political
dissidents, reform advocates, critics
of Islam, handling Shiites internally,
backfire among neighboring nations,
are very thorny and might be equally
important in the fall of the House
of Saud. They will not be commented
upon, since the other prevalent factors
are covered.

The transition will not be smooth. At stake is stability on the geopolitical
front, but also continuity within
the vast Saudi petro-chemical business
that includes very sophisticated petroleum
engineering. The American/British
expertise, together with Western European
expertise (like Norway),
will be required. Without it, the
Saudi oil output will enter decline.
The Saudi financed shills speak
openly about creating a new security
arrangement for the Arab world,
but it is a well understood joke and
stream of empty words. The House of
Saud is showing fear and insecurity,
throwing fits, seen as crying in public
to attract attention. They are the
geopolitical babies who wish to continue
the plunder of national wealth under
the aegis of a protector. At risk
is their energy industry. The Chinese
do not possess expertise. They are
just the biggest global oil importer.
The Saudis lack PhDs, but have plenty
of camels and arrogance, even Islamic
priests. Watch the angst with the
United States, combined with hitting a brick wall
with Russia,
result in the Saudis falling into
the Chinese hands. Finally the
hidden element of the USDollar support
from oil sales will be more clearly
revealed. For the last two decades,
the primary backbone for the USDollar
has not been economic or financial,
but rather military. See another
gem depiction by Pawel Kuczynski,
whose art work speaks 1000 words.
He omitted the field tanks, fighter
jets, uranium artillery shells, and
drones in the the USD blanket too,
not just helmets and rifles. The cleaning
has begun, the fallout to be revealed.

◄$$$ THE PETRO-DOLLAR IS IN THE PROCESS OF BEING PHASED OUT. THE EUROPEANS
REALIZE IT. THE UNITED STATES DOES
NOT. THE USFED ITSELF MIGHT BECOME
AN ANACHRONISM RENDERED SUDDENLY IRRELEVANT
IN A NEW PETRO-YUAN WORLD. THE WALL STREET PRINTING PRESS TO DOLE OUT WEALTH TO ITSELF MIGHT SUDDENLY
BECOME JUNK METAL AS THE METTLE WILL
RESIDE IN BEIJING. $$$

An unusual but realistic repercussion could come soon, where the Saudi Arabians
find themselves on the wrong side
of the fence. The Riyadh
leaders might be setting themselves
up for sanctions, slowly at first,
in a spectacular sequence of events.
Consider the Russian Valentin Katasonov,
economist and the chairman of the
SFSharapov Russian Economic Society.
He wrote a significant essay about
the new dynamics of Iran,
Saudi
Arabia, and the
Centennial of the Federal Reserve.
It would be ironic if the 100-year
anniversary of the bank syndicate
control center occurred with a flip,
where detente was reached with Iran
(ally and trade partner with the East)
but where friction was triggered with
Saudi Arabia (ally and Petro-Dollar
liaison with the West).

Katasonov makes numerous excellent points. The active dialog between Tehran
and Washington, brokered by Berlin, caused a sharp
negative reaction from Riyadh.
The Saudis were barely represented
at all, indicative of how effectively
they hide under the skirt of protectors.
The possible consequences of this
conflict are far reaching, and full
of irony, as the Saudis could resort
to the same methods of trade that
Iran
has used for two years. He wrote,
"Saudi Arabia could very soon end up in the same
situation as Iran
was in the past: sanctions could be
imposed against Riyadh.
One can anticipate Riyadh's
reaction in this case. It will try
to avoid transactions in US dollars
by switching to other currencies.
It may also use such time tested instruments
as gold and barter. The next move
will be Washington's
and it will be a forceful one. Washington
will try to gain control over Riyadh
by military means and force it to
abide by the 40 year old agreement
(conduct transactions exclusively
in US dollars)."

Katasonov described the United States as becoming
a hostage of its own involvement in
Middle Eastern affairs. Iran is unlikely to use the
USD in energy trade. Tehran
is likely instead to continue with
Chinese Yuan and Indian Rupee. The
Saudis will be pushed to adopt a Petro-Yuan,
the extreme damage hitting USTBonds.
He described the formerly stable Middle
Eastern foundation of the Petro-Dollar
defacto standard as a quaking bog
that features the USDollar in its
death throes. He notes the events
taking place on the eve of the 100th
anniversary of the creation of the
Federal Reserve System. He concluded,
"If the dollar collapses,
the Fed's printing press will
become worthless junk. Nothing will
be left of the Federal Reserve but
a facade. It cannot be ruled
out that the Fed will not survive
long after its centennial, and it
could be from the Middle
East that its demise will come."
The Jackass dislikes double negatives.
He concludes the USFed might not survive
the turning of the Petro-Dollar page
to the next chapter that features
the Petro-Yuan, the hand being Arab
that turns the page.

Pepe Escobar is an excellent analyst with a keen sense of what is important,
whose flair is appreciated. He notes
the Saudis must conform to the new
global players, Russia & China. The recent Beijing rumblings are a call to end the Petro-Dollar defacto standard,
with its reign of terror. The giant
Chinese petro-chemical plant by the
Red Sea is of
huge importance in leverage. See his
recent essay on "Losing the
Petro-Dollar Religion" in
Asia Times (CLICK HERE).
He wrote the following. "The
House of Saud also knows very well
it is the solid anchor that keeps
OPEC tied to the petro-dollar system.
Without Saudi
Arabia the petro-dollar
is history. That is arguably the number
one scam in international relations.
Virtually everyone and his neighbor
needs US dollars which are mostly
invested in US Treasury Bills and
other securities, mostly used to buy
US dollar-denominated commodities
like oil. How sweet it is to be
bought by you. Washington keeps running up untold trillions of US dollars in debt
that everyone must buy. The House
of Saud of course duly invests its
cascades of US dollars in US debt. Now imagine the House of Saud deciding
to ditch the petro-dollar. That would
be Apocalypse Now for the US economy. Slowly but surely
times are changing. Iran under those
declaration of war style sanctions
is pointing the way, selling energy
in other currencies, accepting gold
and even bartering. The House of
Saud, by the way, is also terrified
that with a US-Iran detente, there
will be a lot more Iranian oil and
gas on Western markets, thus diluting
Saudi profits.

Russia
is now the number one global oil exporter,
and China is the number one global
oil importer, importing more from
Saudi
Arabia than the
United
States. By 2020 China will be importing a whopping 9.2 million
barrels of oil a day. So it obviously
makes no sense for BRICS members Russia
and China to keep using the petro-dollar.
That is a crucial feature of Beijing's recent call to de-Americanize the world. And Riyadh
knows it. The House of Saud also considers
two other trends. It has been exporting
most of its oil to Asia for years
now, and China
inevitably has become the top exporter
of myriad manufactured products to
Saudi Arabia, ahead of the US. Beijing once again is playing a discreet
long game investing in Saudi infrastructure.
Aware that Saudi
Arabia cannot
export more of its heavy high sulfur
oil, because few customers can refine
it, China is building a massive
new refining and export complex. So
long-term, what we have is essentially
a US-China confrontation (with Russia
and Iran
also weighing in) over the petro-dollar.
The House of Saud utmost priority,
whatever happens, is self-perpetuation.
Then to keeping earning loads of cash,
petro-dollar or otherwise. And then
to keep mortal enemy Iran, those 'Apostate Shiites' in check." In the next year watch for growth in the Chinese Yuan account.

## GOLD STORY WESTERN FRONT

◄$$$ ANDREW MAGUIRE CLAIMS THE LONDON-BASED LBMA GOLD MARKET IS IN GREAT
DANGER, NEAR COLLAPSE. THE CHINESE
TRADING STRATEGY HAS EFFECTIVELY BLOCKED
THE FORWARD AGREEMENT METHODS USED
BY THE LONDON
BANKERS. A DEFAULT APPROACHES WHEREBY
THEY CAN NO LONGER ACCESS PHYSICAL
METAL WITH WHICH TO EXERT CONTROL
OVER THE MARKET. THE LBMA GOLD MARKET
COLLAPSE IS AT REAL RISK. IT LACKS
METAL. IN A SENSE, REVERSE MARGIN
CALLS ARE AT WORK TO KILL THE GOLD
CARTEL. THEY CANNOT MEET THE CALLS
WITH GOLD BARS. THE GAME IS NEARING
A CONCLUSION. $$$

Andrew Maguire shared his perspective on the gold market, corrupt as it is.
As preface he made clear that the
synthetic COMEX supply is not gold
at all, but rather phony supply in
worthless gold certificates and ledger
items. With ease, the big banks
can overwhelm the underlying (true
physical) demand with seemingly infinite
paper gold. In just an hour or two
in time, they can sell a full year
of global gold mine output (or silver
mine output) with no consequences
legally. They are protected by the
corrupt governments, which are in
turn controlled by the bank cartel.
The fake gold market will suffer a
price decline. But the physical gold
market is unleveraged and real, experiencing
big shortages and supply line interruptions
due to the corruption. Maguire pointed
out that the USFed enjoys its position,
with complete visibility into the
trading book of the large and small
speculators alike. They know exactly
how much synthetic (futures based
paper) gold to dump into the market
at any time to overcome the bid stack.
They can outweigh the buyers at any
time. They can ignite the algorithm
driven momentum to force selling with
collusion by the big banks in New
York and London.
The USFed and Wall Street, with London
collusion, are expert at the USFed
game. They even enlist the support
of the financial news networks to
spin out absurd stories. Most of the
public gobbles it up like idiots.

Maguire painted the picture with the crooked games and excessive leverage to
defend the system. He gave a concrete
example, and then described the leverage.
He said, "It allows the two
primary bullion bank operatives to
front-run, using inside information,
for their own book too. When a single
entity instantly dumps, like after
the FOMC Meeting, over 35 tons of
synthetic gold into the market, it
is giving the algorithm driven market
the temporary ability to overwhelm
any unleveraged physical demand.
This is the last vestiges of the tail
wagging the dog, although as each
time they do this, the physical buyers
take the spot price. They then
step up into the London fix, demanding to convert these paper purchases
into real bullion. Speaking of
London, the physical market is where the rubber
actually meets the road.

Converting
so much paper gold into bullion is
stressing out [the existing system
with] between 90:1 and 100:1 leverage
of available supplies. This was never,
ever anticipated to happen [by the
bullion banks or the Fed]. The bulk
of all LBMA bank accounts are held
in unallocated form. It is amazing
how few institutions even realize
this. That includes $billions of pension
fund holdings. What amazes me is when
speaking to these [pension fund] managers,
they actually believe they have access
to the physical gold, or that they
can convert these holdings into allocated
form on demand. That could not be
further from the truth."

Maguire describes the mechanism that will destroy the
LBMA/COMEX, the physical gold demand
at the artificially low price. Tricks
and deception are used by officialdom.
When applying for an LBMA bullion
account in London,
any party (whether a wealthy investor
or an institutional entity) is steered
into the lower cost unallocated option
with the lure of lower carrying costs.
The Allocated Accounts cost more,
and involve careful bookkeeping like
with the serial numbers and recorded
stamps. Closer paperwork inspection
reveals quickly that unallocated accounts
contain zero physical bars to support
the bullion holdings. The depositor
merely received a ledger receipt,
just like a cash bank account. Therefore
the depositor unwittingly becomes
a creditor of the bullion bank, but
worse, with zero visibility of the
activity that moves around the bullion
wealth. Maguire calls these accounts
highly leveraged, rehypothecated structures
that for decades have completely distorted
true supply & demand fundamentals.
Enter the present, where big events
are happening.

Maguire describes great changes, as the new Chinese players have grown savvy.
They are interrupting the financial
paper games like tossing in large
wooden shoes in the works (origin
of the word sabotage from disruption
to the Industrial Revolution that
wiped out jobs). The rollover process
has been altered, and the game is
nearing an end, with a gold market
default looming. The balance of
physical and paper gold is being implicitly
forced. The leverage anchor has been
dismantled, and the leverage is working
against the London
bankers. They have lost control finally,
creating an end game. The tables has
turned on them. Huge additional physical
gold demand can destroy their entire
corrupted arena, here and now.

Maguire described the dynamics behind the eventual breakdown of the London Bullion
Market Assn. The system lacks metal,
like a car engine that lacks lubrication.
The seizure is assured. He said, "China is now poaching, financing these
forward agreements away from these
traditional LBMA bullion banks, ruining
their ability to roll forward many
of these leveraged positions that
have kept this Ponzi scheme at the
LBMA going. People have to understand
this is a game changer. It forces
the bullion banks to pay the piper.
The bullion banks have to mark longstanding,
over-collateralized, rehypothecated
gold and silver positions to market.
This means buying physical to do
so. This starts to bring supply &
demand fundamentals to the forefront.
These positions are put on, and over
time they were rolled again and again
and again, allowing them to be collateralized
as we said, 100 times over. At that
time the bullion banks had full control
of the US
and London
markets. However, this unanticipated
physical demand is removing this underlying
physical gold out of their control.
This is a big deal. The high leverage
in the paper markets, based upon one
ounce for every rehypothecated 100
ounces employed in the market, this
anchor has now come loose. Unfortunately,
for the bullion banks leverage works
in two ways. What we are seeing
now is the start of a forced unwind
of these rehypothecated positions.
There is simply not enough physical
gold for them to cover their positions,
and that is why we will see a default
at the LBMA." The
death of COMEX/LBMA is within view,
but with no time deadlines, only obvious
imminence. Hats off to the Chinese,
but they have their own agenda. A
massive short squeeze is in progress,
and the victim is the gold cartel.
The monster in the arena has turned
against its masters, and only because
they are running out of physical gold
bars. See the King World News interviews
(CLICK HERE
and HERE).

◄$$$ GLD INVENTORY DATA SCREAMS OF BANKER PANIC. SOMETHING BIG IS GOING
ON WITH GOLD DEMANDED BY A SECRET
PARTY. AN IMPORTANT GOLD LEASE WITH
A HIDDEN THIRD PARTY MIGHT HAVE TAKEN
PLACE IN LATE 2008. THE WALL
STREET BANKS SURVIVED A SCARE, BUT
TODAY THEY MUST RETURN THE LEASED
GOLD. THEY CANNOT AND ARE THEREFORE
IN BIG TROUBLE. GIVEN THE JPMORGAN
HQ PROPERTY SALE,
SOME FINGERS POINT TO CHINA
BEING THE HIDDEN PARTY. EURORAJ WAS
PRIVY TO SOME HARDBALL ACTIONS DONE
BY CHINA TO SWAP SENIOR BANK
BONDS FOR GOLD IN YEAR 2011.

ON THE AMERICAN FRONT, THE TECHNICAL DEFAULT OF CHINESE-HELD USAGENCY MORTGAGE
BONDS IN 2008 MIGHT HAVE RESULTED
IN MORE DEMAND FOR GOLD BULLION IN
RESOLUTION. THE PICTURE PAINTED APPEARS
TO INDICATE CHINA
IS CALLING IN OLD CHIPS, AND WILL
WRECK THE ANGLO BANKERS. DATELINE
2014 FOR THE WRECK. $$$

EuroRaj has shared another featured dynamic behind the complex gold market.
He hypothesizes that some truly enormous
games were played in 2008 during the
Lehman breakdown. The bust was much
wider than just Lehman and Fannie
Mae with an AIG chaser. Some big
gold swaps were done five years ago,
precisely when China
was being a sonofabitch to New
York and London with extreme pressure applied. Some
analysts believe that Fannie Mae was
adopted by the USGovt with nationalized
status, because the Chinese were dumping
USAgency Mortgage Bonds. They exercised
vengeance after the US reneged on returning their leased Mao-era gold
as part of the 1999 Most Favored Nation
grant. Powerful vengeance indeed!
Well, EuroRaj was in Wall Street leading
to the 2008 grand breakdown, then
jumped to London
at a different bank in The City. He
observed much and put the pieces together.
Last month he shared his perspective
on the hidden Goldman Sachs bailout
via the AIG adoption and the TARP
Fund that followed, even the extreme
unseen vulnerability of GSax from
not having an established mature commercial
bank foundation.

EuroRaj follows the GLD inventory closely. A good litmus test for gold stress
is offered behind the walls is the
GLD Fund inventory of gold bars. At
end year 2012 it was 1350.82 tons.
The present count (or very recent)
was 852.21 tons. It is losing approximately
50 tons per month. The SPDR Gold Trust
(aka GLD Fund) will very likely be
shut down at some point in 2014. Expect
to touch the 800 ton level in late
November or early December. The big
effect will be what follows. The drop
from 800 to 600 tons could be very
sharp. He has postulated that the
GLD is Gold in Motion, from the mining
firm output to the Wall Street corrupted
arena. Mine output is sharply
down. Also, the GLD bars are being
used to satisfy arbitrage demands
from Shanghai,
where the gold price is noticeably
higher, at least high enough to make
the arb trade profitable. The GLD
depletion is the visible alarm, which
should alert its sleepy dopey junkie
investors to exit quickly. Any sudden
departure en masse would exert additional
extreme pressure on the gold cartel.
Regard the GLD inventory as the last
vault of gold to raid in the end game.

EuroRaj discusses the big 2008 events in the gold backrooms. The gold market
has some tabs coming due, old bills
that involve Wall Street, the Chinese,
and the Saudis. They must be resolved,
in no way endless like Barrick Evergreen
gold contracts. Bills are due here
and now. The fallout victim could
be the Petro-Dollar, due to Arab anger
and a sense of betrayal by WashingtonDC.
Harken back a few years when the crash
occurred. Some large party deposited
almost 200 tons back in 2H2008 right
in the middle of the banking crisis.
They might have been compelled, due
to contractual obligations. The event
was very strange, but went largely
unnoticed. Imagine a significant deposit
of gold bullion going to the very
banks believed to be dead, as the
Lehman failure was set to occur. It
reeks of extreme coercion and pressure,
or else a giant favor granted. It
could have been China,
or Japan, or Saudi Arabia,
maybe even the Vatican.

The motive contains the intrigue. Clearly, with some thought, the transaction
took place because someone bigger
than the banks (with clout) refused
to accept USTreasurys as collateral
and demanded Gold bullion instead.
They had their fill of debt securities.
The banks appealed to an ally, a partner
within the grand system, borrowed
gold from them, and gave it to the
counter-party who demanded the gold.
The Wall Street banks survived
for a few years on the back of the
lease, but time is perhaps up. The
five-year lease could have expired,
and the banks might be foraging for
that 200 tons to return that gold.
The Venezuelan 15 tons is a piece,
but not even 10% of what is required
to keep the peace. Expect some consequences,
like vengeance, the result to be visible
in some form. To be sure, lies will
be told, but given the extreme nature
of the complex deal, we as observers
might be able to infer who the hidden
critical gold counter-party was after
all. Theirs will be the loudest voice,
or the most disruptive hand.

EuroRaj personally was close enough to the heat of the bond and gold market,
that he tosses out names, just for
example sake. They might be the actual
parties, unsure. Suppose China refused to accept USTreasurys
from JPMorgan & Goldman Sachs
as collateral in 2008. The result
would be that JPM/GS went to a friend
(like Saudis or London or Japan)
and leased the Gold from them, handing
it over to China during the urgency of the post-Lehman weeks
late in 2008. Essentially China might have declared "We keep the
Gold, you keep the USTreasurys."
However, time marches on and
the GS/JPM Titans would have to return
Gold to their ally who came to their
aid in a time of need. Next comes
the Big Oops. The Wall Street Duo
cannot easily force them, or convince
them, to accept another five-year
lease when GS/JPM cannot be trusted.
The recent spate of stories and prosecution
cases, even lawsuits, indicates clearly
that the duo cannot be trusted to
return the gold. Connect the other
events, the dots as the alert curious
analysts prefer to say. The Chinese
property conglomerate that last month
acquired the JPMorgan HQ & Gold
Vault could very likely be linked
to the big 2008 gold lease in some
shape or form. In the aftermath, China is taking physical control
of the gold, leaving the other desperate
parties high and dry. JPM/GS can no
longer shift gold in its vault to
satisfy two sets of owners. They are
caught in a bind. The outcome sounds
and smells like re-hypothecation gone
up against a brick immovable wall.
The ultimate problem is lack of physical
gold, a common stated issue. The above
is a credible hypothesis of events
extended from the 2008 crisis, which
is not over. It might be reaching
a climax.

The dynamics of gold shortage might be entering the final equation. Be sure
to know that our bond analyst with
connections to India,
Turkey, Iran,
and London
has a very good working nose. He has
shared his hunch, and says humbly
nothing scientific to back it up.
But it makes sense. He has been
close to the fire, noting the Chinese
attitude and occasional hostility
in market behavior. He shared another
story filled with intrigue. In
the middle of 2011 when the EuroZone
crisis was in full bloom, Greece
then Spain
and Italy were erupting on sovereign
bond breakdown. EuroRaj saw from the
London offices an Asian entity dumping senior bank bonds, which
the banks were forced to buy back
at gun point, under intense pressure.
He mentioned being in the middle of
the conflict with a few fellow traders.
At the same time, the Gold price was
moving up quickly. His conclusion
was that the Chinese were executing
a clever Gold swap using their senior
bank bonds as currency. It was extreme,
fast, effective. Later that year in
December, Draghi launched the LTRO
super senior bond scam, which reduced
the liquidity pressure on the European
banks, who happened to be stuck with
their own bonds shoved down their
throats. They had to take what China sold off, playing hardball
tactics. The biggest takers of the
senior bonds were Spanish and Italian
banks. Both nations are a wreck.

When bouncing the theory, we weighed another factor. The Jackass brought up
a key element that had to be integrated
into the complex equation. The only
hard part to absorb is the 2008 trouble
with collateral. However, that
is exactly when China is reported to have
delivered with force their Fannie
Mae Mortgage Bonds back to the USGovt
for redemption. In response, the
USGovt nationalized Fannie Mae. The
move served two purposes, since Fannie
Mae and the entire GSE complex of
mortgage bonds was an enormous center
of criminality, bond fraud, rampant
collateral falsifications, counterfeiting,
even presidential thefts (see Clinton
& Papa Bush theft of $1.6 trillion
combined, fully documented by silenced
auditors). The European banks might
have been pressured on senior bank
bonds, but the Wall Street banks were
pressured on USAgency Mortgage Bonds.
Thus the nationalization and easier
redemption in the shadows of the USDept
Treasury.

Much more fallout occurred from the entire Lehman event, as he has inferred,
with a second side being mortgage
bonds. The Chinese might have cut
a deal, to accept the required Gold
that Wall Street was desperate to
supply them, but in return for other
agreed upon provisions. The Chinese
might have been promised the JPMorgan
HQ complex in commercial property,
plus the gold vault. The Chinese
might have also been given permission
as right of first refusal to purchase
high profile commercial property in
the United States. They are
gobbling up New
York City property, Los Angeles property, and San Francisco property. They are also establishing isolated factory
colonies like in Idaho. The big hints are the pittance price paid for the One
Chase Plaza (JPM HQ) for a mere US$725 million.
The property is worth twice that figure.
The deal reeks of handing over collateral,
rather credible as proof. EuroRaj
believes the technical defaults on
the Fannie & Freddy bonds might
have enabled China
to call the terms of the resolution.
They might have demanded Gold bullion
in return, five years later (as in
now). He concluded China might have decided to conduct a trial run
for defaulted bonds, to be exercised
in 2013/2014. The Taper Talk and USGovt
shutdown might have been that trial
run exercise. The Jackass belief
is that JPM lost its collateral on
a default, possibly related to Interest
Rate Swaps where the Chinese stepped
in gradually to take the counter-party
positions over the last few years.
The Chinese might be competing with
the elite Exchange Stabilization Fund
in taking counter-party positions
in globally important trades.

◄$$$ THE VANISHING OF CANADIAN OFFICIAL GOLD RESERVES HAS A HISTORICAL
PATH THAT INVOLVES MULRONEY AND BARRICK
THE MINING FIRM. THE COLLUSION APPEARS
TO BE VERY SCUMMY AND SORDID, IN A
GREAT BETRAYAL OF THE NATION AND PEOPLE
OF CANADA. $$$

This story was written back in November of 2002, after nearly two years of research.
Intrepid analyst and editor Ed Steer
(with affiliation to GATA) conducted
research on how almost the entire
Canadian Govt reserves were sold from
under the noses of the Canadian people.
The great majority of 660 tons quickly
vanished. The intriguing part of
this story is that Brian Mulroney
was the Prime Minister of Canada when most of the national
gold reserves were sold. Mulroney
was invited to join the Barrick Gold's
executive board shortly after he resigned
as Prime Minister in 1993. The
collusion seems egregiously obvious.
He served as the chairman of Barrick's
other board, called the International
Advisory Board, which functioned like
a global committee with security agencies
and the CIA with Papa Bush onboard,
as well as Wall Street and London
liaisons. No other gold company had
a second board of higher more secret
level of representatives. For more
on this Board and who is on it, check
out the bottom of page 117 in Barrick's
2003 Annual report. It is rather impressive,
if not frightening, sure to produce
a mild chill.

The connection between Mulroney, the Bank of Canada, and the US
bankers is all too coincidental and
cozy. The key element is the CIA,
which in my opinion is complicit in
the theft of Fort Knox gold and the elimination of President
Kennedy. The story takes some unusual
turns, when Barrick entered into
so-called Evergreen gold contracts
with the COMEX. They were part of
massive special gold sales, with no
legal requirement ever to deliver
the gold bars, thus the name.
Many Canadian friends and colleagues
try to convince the Jackass that their
nation does not play the same games
as the Wall Street crooked clan of
bankers. But as far as dumping the
entire gold reserves, engaging in
bank derivatives, permitting naked
shorting of gold mining stocks, and
going the asset bubble route, the
similarities between Canada
and the United States overwhelm the
differences on the financial front.
The biggest differences are found
in the Westen provinces, where Chinese
influence is starkly in evidence and
some real capitalism is practiced.
See the Financial Sense article by
Ed Steer from 2004 (CLICK HERE).
Ed mentions that some a few changes
in hyperlinks are made since some
have become inactive.

◄$$$ FINANCIALLY STRAINED VENEZUELA REPORTEDLY CUT A DEAL WITH GOLDMAN SACHS
TO MORTGAGE ITS REMAINING NATIONAL
GOLD RESERVES HELD IN LONDON. THE NATION IS STRAPPED FOR CASH, AS IT UNDERGOES THE DIFFICULT
ADJUSTMENT TO CONDITIONS FOLLOWING
THE EXIT OF CHAVEZ. $$$

As preface, note that Standard & Poors downgraded the Venezuelan Govt credit
ratings to its lowest in eight years
in June. One reason cited for the
downgrade was the gold price, which
weakened their ability to pay on debt.
They really need a printing press
like the USGovt, which never worries
about paying back debt. The Venezuela newspaper El Nacional
reported last week that their Central
Bank and Goldman Sachs are ready to
sign an agreement to swap gold reserves,
the arrangement running from October
2013 until October 2020. The negotiated
amount is equivalent to 1.45 million
ounces of gold, valued at around US$1.8
billion. The gold is to be deposited
at the Bank of England, with the funds
transferred directly to Goldman Sachs
once delivery times are stipulated.
Goldman Sachs will then pay USDollars
for the gold. An adjustment of 10%
will be made to the asset value as
a hedge, for bulk guarantees. That
comes to $180 million in hedges put
on, with lucrative fees to the GSax
mafia. The annual interest rate will
be 8%, determined by the BBA LIBOR
rate.

Economist Jose Guerra told El Nacional that the contract is designed to provide
liquidity to the Central Bank of Venezuela.
They face a cash liquidity shortage,
a condition since 2004. Current cash
levels are only $1.2 billion, used
to fund imports. Any dispute involving
the transaction and its implementation
will be resolved in English courts,
which sounds cozy and one-sided. The
nation of Venezuela is in a dire situation, made more obvious
and urgent since the mysterious death
of Hugo Chavez. Their central bank
reserves have been falling fast this
year. Stress has been acute since
the S&P debt downgrade, coupled
with a nearly 75% currency devaluation
in the last year plus. Some irony
exists, much like the backlash experienced
by individuals who pay off a lump
sum on credit cards, only to find
their credit rating lowered. It seems
that past events with more transparency
worked against the nation's credit
rating.

In September 2011, Chavez announced the country's gold mining sector would be
nationalized. He also brought back
home to Caracas
significant tonnage in international
gold bullion reserves held in foreign
banks, the majority from London. At the time, Moodys stated "The Chavez decision to
repatriate the gold reserves is a
potential credit negative to the extent
that it makes the handling of Venezuela's
reserve cushion all the less transparent."
The Latin American average of
gold reserves held abroad was 8% at
the time. By January 2012, Chavez
had brought 160 tonnes of gold bars
back to Venezuela, leaving 15 tonnes of gold reserves
in foreign banks. This gold is to
be mortgaged to raise cash, and conversely
to supply the bank cartel with plenty
of gold with which to honor contracts
or to suppress its price. See
the MineWeb article (CLICK HERE)
and the original El Nacional article
in Spanish (CLICK HERE).

Chavez would roll over in his grave to see his successor play ball with GSax
and the bank cartel. However, much
painful adjustment has come in the
last 18 months after removal of his
strict rules that held back markets.
It should be clearly stated that Chavez
wrecked his nation, wrecked the national
oil company, and fleeced its wealth
not for the benefit of his people,
but rather for his countless rogue
friends. He filled the PDVSA national
oil company with his hack friends
with little or no engineering experience,
and largely gutted the company. Under
his watch, PDVSA has seen a horrendous
decline in output. His legacy is of
cronyism, corruption, and rape of
the nation under the guise of popular
socialism. He is despised by hundreds
of thousands of nationals who departed
the country with their money, including
my friend CarlosS, who lives in New
York City. In summer 2006, the Jackass
treated him to a lunch in order to
pick his brain on Chavez matters.
We still keep in touch. He was my
bank branch manager in Pennsylvania.
He actually joined JPMorgan in London
for a year of misery, after which
he complained of horrible treatment.

◄$$$ THE SWEDISH CENTRAL BANK HAS DISCLOSED THE LOCATION OF ITS TONNAGE
OF GOLD RESERVES. ALMOST HALF ARE
HELD IN LONDON.
NOBODY REQUESTED THE INFORMATION.
THE UNUSUAL DISCLOSURE MIGHT INDICATE
AN UNEASY LIAISON WITH LONDON
AND A POSSIBLE FUTURE DEMAND FOR REPATRIATION.
$$$

The Swedish Riksbanken, their central bank, decided to be more transparent and
make an unscheduled disclosure. They
provided details where they store
their 125.7 tons of gold. The information
has long been kept a secret, never
communicated publicly. Half of their
gold reserves are located at the Bank
of England. Some perplexed reaction
has come, nobody able to explain why
the data has come out now. No official
parties or popular movements within
Sweden
had requested data on its location.
Apparently once per year, statements
are provided. Assurance has been given
that they will start to inspect physically
their inventory, implying distrust.
Seems like distrust of London has finally arrived. Perhaps very soon news will come of an
official request to repatriate those
61.4 metric tons of gold bars back
to Stockholm.
See the original DI article in Swedish
(CLICK HERE).
It would be interesting if Denmark
made the same repatriation demand
as Sweden simultaneously.

## GOLD STORY EASTERN SHIFT

◄$$$ MORE PHYSICAL GOLD IS BEING DELIVERED TO CHINA
THAN MINED GLOBALLY. THE TWO ROUTES
ARE THROUGH THE SHANGHAI
GOLD EXCHANGE AND THROUGH THE HONG
KONG WINDOW. THE SHANGHAI
GOLD EXCHANGE IS MAKING A GIGANTIC
IMPACT, THE NEW ELEMENT IN THE EQUATION.
$$$

The recorded demand for gold from China's private sector has
escalated to the point where their
demand currently accounts for significantly
more than the rest of the world's
mine production. The Shanghai Gold Exchange is the primary window for physical delivery,
while Hong Kong
acts as a separate parallel hub.
In the first eight months of year
2013, together they have delivered
1730 tonnes into private hands, annualized
to be 2600 tonnes. The world mining
output is an estimated 2260 tonnes
of gold, excluding China. The gold supply deficit
for Southeast Asia and India will continue to put great strain on the
gold price. Actually, the paper corrupted
COMEX price does not have much strain
at all, since it bears a disconnected
link to the tangible bullion world.
The strain is on the physical market,
which approaches breakdown. China
has become the undisputed destination
for physical gold. The trend from
the last two or three years shows
no signs of slowing down. See the
Sprott Group article (CLICK HERE).

The Shanghai Gold Exchange, founded in 2002, has quickly grown to become
the largest spot gold exchange in
the world. The SGE is to facilitate gold ownership,
while the Shanghai Futures Exchange
(SHFE) is a means for China
to influence the international gold
price. The SHFE works in terms of
warrants, tied to gold as good delivery
bars in kilogram format. So far
in 2013, from January to September,
the exchange has delivered 2.25 times
more gold than it had in the same
nine months in 2012. The Chinese
Govt does not require investors who
conduct physical delivery of SHFE
gold contracts to pay value added
tax (VAT). See the UK Real Asset article
(CLICK HERE).

◄$$$ CHINESE GOLD RESERVES AN ORDER OF MAGNITUDE HIGHER THAN OFFICIALLY
REPORTED. WORD FINALLY COMES OUT THAT
RESERVES ARE VASTLY UNDER-STATED.
CHINA HAS OPENLY CHALLENGED THE USGOVT
LEADERSHIP, IN ALL LIKELIHOOD BECAUSE
THEY HAVE FINALLY ACCUMULATED A GIGANTIC
VALID CORE OF GOLD RESERVES. TIME
HAS RUN OUT. THE CHINESE ARE OPENLY
CALLING OUT THE AMERICANS FOR RECKLESS
ACTIONS AT THE GLOBAL HELM THAT PUT
THE REST OF THE WORLD AT GREAT RISK
AND CONSIDERABLE AGONY. $$$

As uneasy global concerns continue that the US Federal Reserve will maintain
the pace of unprecedented monetary
stimulus and currency debasement,
the voice of the Chinese Govt (Xinhua)
has lashed out at the USGovt in clear
terms with extreme criticism never
before heard in a steady stream diatribe.
Comments from state backed Xinhua
have called for a de-Americanized
world, complete with a proposal to
consider a new international reserve
currency to replace the King Dollar.
The official Xinhua News Agency
accused the USGovt directly of creating
the appalling fiscal, monetary, and
political situation as it stands today.
The timing is important, since the
WashingtonDC leadership cast of incompetent
corrupted clowns struggles to reach
agreements on debt ceiling, refuses
to make sharp spending cuts, and is
stuck with destructive monetary policy.
The criticism was as lengthy as it
was detailed, in an extreme break
from a genteel past. The global monetary
war has escalated!!

The criticism deserves ample detail. Key among its proposals is the creation
of a new international reserve currency
to replace the present reliance on
the USDollar as reserve currency.
They accuse the USGovt of bumbling
and profligacy which afflicts the
world. Xinhau referred to the 2008
Wall Street bust, describing the world
as still crawling its way out of an
economic disaster, thanks to the voracious
Wall Street elites, in their words.
They cited USTreasury Bond investors
as having their FOREX assets put in
jeopardy, still at risk from further
debt downgrades. It called the international
community highly agonized over the
financial situation. Back in March
2009, as governor of the Peoples Bank
of China, Zhou Xiaochuan called for the creation
of a new reserve currency. Now
the same call carries more weight,
after more utter failure is obvious
and evident in the USGovt and Wall
Street leadership. Zhou Xiaochuan
is still the Chinese central bank
governor. The goal is to "create
an international reserve currency
that is disconnected from individual
nations and is able to remain stable
in the long run." He indirectly
describes GOLD. The criticism
went on to make conclusions about
the United Nations and its role.

The smart money, including the Chinese people and the Peoples Bank of China, is motivated to take defensive positions
against currency debasement and to
continue the accumulation of physical
gold for the long term. The dumb
money continues not to understand
the ramifications of USDollar currency
debasement and the De-Americanizing
world. It continues to see gold as
a trade or a mere speculation rather
than for the essential safe haven
asset haven toward which it has always
served. Gold might be heading
for the first annual decline since
2000, from its corrupted official
COMEX/LBMA price. However, the artificially
lower price has given China wide berth to accumulate Gold bullion very
rapidly. They have greeted the official
gold price drop this year with pure
lust, continuing to purchase record
amounts of gold. They know the price
drop has created a gift for physical
buyers globally. The massive migration
of Gold wealth continues to go from
West to East, along with the newfound
power. See the Zero Hedge article
(CLICK HERE).
For a detailed review of mining data
and gold reserves data, and much more,
see the Silver Doctors article (CLICK
HERE).

◄$$$ THE CHALLENGE TO KING DOLLAR IS REAL. THE THREAT OF LARGE SCALE DIVESTITURE
AND DIVERSIFICATION IS COMING, AND
IT IS NEAR. A BATTLE
FOR CURRENCY DOMINATION HAS BEGUN,
THE PITCHED BATTLE IN ITS FINAL STAGES.
THE GLOBAL CURRENCY RESET IS ALL ABOUT
GOLD, THE RETURN TO THE GOLD STANDARD.
HOWEVER, PRIVATE SOURCES INDICATE
THE TRUE LEVEL OF CHINESE GOLD HELD
IN RESERVE IS AT LEAST 10,000 TONS
AND PROBABLY CLOSER TO 15,000 TONS.
THE EARLY INDICATIONS ARE CLEAR FOR
A DE-THRONE OF KING DOLLAR, AND A
RENEWED GOLD STANDARD, FROM THE TRADE
WORLD ARENA, NOT THE BANKING REALM.
$$$

The notion of the USDollar losing its status as the world's reserve currency
appears to be more realistic today.
The concept is gaining credence. A
deeper look into China's gold holdings has garnered much attention
lately, including by the Jackass.
Its last reported gold holdings in
April 2009 were 1054 metric tons.
Even then it was a lie, a low figure
as lie. After inclusion of net
imports from Hong
Kong and domestic output, the figure
is closer to 5086 metric tons. If
jewelry, industrial, and other categories
are netted out, and only implied bar
demand to central bank holdings is
added, the figure is likely closer
to 2710 metric tons. The nations
that possess real gold in physical
form will benefit from the relentless
move in progress away from the USDollar
as the world's reserve currency. Some
form of a gold-backed currency emerges.
However, the movement toward Paradigm
Shift will come via trade settlement,
not from currency reform. Private
peer to peer payments will dominate,
not bank transfers. The golden bullet
could be the wholesale devestiture
of USTreasury Bonds. If diversification
away from the USTBonds occurs more
broadly, the movement could cause
an avalanche with significant global
momentum.

Clearly, any USTBond sales would go into a critical mass
of Gold bullion purchases. In the
wake of the financial tectonic shift,
the USDollar might paradoxically not
reduce in value relative to other
floating fiat currencies so much. Some analysts call the mass USTBond sales the Nuclear
Option. They overlook how the Dollar
Swap Facility could be deployed with
urgency, so that newly created USDollars
in the $trillions could be used to
prop up the Euro, British Pound, Swiss
Franc, Japanese Yen, Canadian Dollar,
and other currencies. An unexpected
early skirmish could be seen. The
Bank Cartel vengeance could be to
preserve the major currencies, and
to wreck every single emerging market
currency except the Chinese Yuan.
Wrecking the Russian Ruble, Indian
Rupee, Brazilian Real, and South African
Rand would be easy. The defense would
urgently demand the BRICS nations
to execute a counter-strike by
lashing these emerging market currencies
together to the newly Gold-backed
Chinese Yuan. Then the Eastern currencies
would compete as a group centered
upon Yuan, against the Western currencies
as a group centered still upon the
USDollar. It would be a titanic
struggle of toxic paper versus Gold.
The yellow metal would win easily.
The threat of lower USDollar versus
all commodities and higher USTBond
yields should frighten the Western
leaders.

The Jackass has repeated the point many times. The Chinese Govt is accumulating
Gold bullion in tremendous staggering
huge volume. It is like a war setting
within the Monetary War for control
of the financial structures, complete
with airlifts under the radar to move
Gold bullion. The Voice has assured
that the Chinese have multiples more
gold in reserves than the official
data. It is not in their interest
to reveal the factual data. The airlifts
from London and
Switzerland are weekly, in
high gold volume. He estimates the
Chinese Govt gold reserves are closer
to 15,000 tons on the best calculation.
He should know, since he is one of
their brokers. As footnote, The Voice
cites the Kremlin as housing at least
15,000 tons and perhaps 20,000 tons
of gold as part of the Russian Govt
gold reserves. China
& Russia are ready to challenge the United States and Great Britain, armed with a massive gold arsenal.

◄$$$ THE GRAVITY OF THE SITUATION IS PERCEIVED BY SEVERAL OTHER ANALYSTS
AND FUND MANAGERS. STEPHEN LEEB CALLS
IT THE DAWN OF A TERRIFYING NEW FINANCIAL
AND MONETARY WORLD ORDER. LEEB SEES
THE CHINESE ACCUMULATING GOLD RAPIDLY,
WITH AN OBVIOUS OPEN DOOR FOR CHEAP
PRICE DONE INTENTIONALLY (SECRET PACT).
THEY ARE PREPARING TO DISPLACE THE
KING DOLLAR. THE CHINESE WILL REVALUE
GOLD WHEN READY, TO AT LEAST $10,000
PER OUNCE IN PRICE. $$$

Leeb predicts the emergence of global alliances that will come together in order
to reshape the financial structures.
They will be centered on G-20 nations
led by the BRICS. He goes on to describe
nazi-like propaganda and directed
lies in order to keep the gold price
down, restrained, at bay. The USFed
has repeated its threat of tapering
the bond purchases, but they have
lost credibility. He believes China has gathered much more
gold in reserves than is made public,
the full extent not known. The Beijing
leaders see the USDollar as a lousy
currency, in his words. They could
not conceivably be comfortable when
the USGovt threatens shutdowns, with
implicit defaults. He assumes they
not wish to lose on their FOREX reserves
in the event of a default. But The
Voice claims the Chinese have already
made preparations to write off $1
trillion in USTBonds. Leeb reminds
that the USFed is buying over $1 trillion
USTBonds per year in the monetization
program. They are still monetizing
the debt, which is both unsustainable,
and something a Third World nation does. It is obvious that the USDollar is losing its
supremacy and prestige. Various countries
no longer want to trade in doll ars.

The major countries will follow the Chinese and turn to gold. The Chinese Govt
is accumulating gold at an all-time
record pace, he acknowledges. Leeb
goes on to suspect openly that the
West is in some kind of agreement
with China
to sell them cheap gold, the price
kept low by force to enable their
accumulation. There is no other way
to explain the price action, he perceives.
The Jackass believes China
has forced a pact, whereby the Gold
price is kept low, and in return they
delay their final USTBond dumping
in the hundreds of $billions per month.
Leeb concludes, "Regardless,
all this type of manipulation and
dishoarding of gold from the West
to the East does is hasten the day
in which China,
Russia,
and Germany are going to introduce
another reserve currency to the
world. And the Yuan is going to have
a prominent role there. This is why
the Chinese are buying up all of the
available gold for sale in the world.
They are literally in a race to accumulate
gold. You can see it in the data.
Yet the Western based Ponzi scheme
paper markets in gold take the price
lower. There is something strange
going on here, but I can promise you
it is unsustainable. The Chinese
will revalue gold when they are ready,
and that day is coming. Then it
will be goodbye Dollar and hello Gold.
I am not talking about a run to the
old highs. I am talking about Gold
many thousands of dollars higher than
current levels, and quite possibly
over $10,000 an ounce. There is
just no way around this outcome. Until
that day comes, the West will desperately
cling to Fed propaganda and paper
gold price suppression until it blows
up in their faces." See the
King World News interview (CLICK HERE
and HERE).
Leeb comprehends that China,
Russia,
and Germany will form the core from the Eastern Alliance.

◄$$$ DUBAI TRADE IN GOLD IS RISING EXPONENTIALLY, DESPITE THE MINOR RESTRICTIONS.
ONE QUARTER OF GLOBAL GOLD TRADE PASSES
THROUGH DUBAI,
AND ONE QUARTER OF DUBAI GOLD PASSES
TOWARD INDIA.
DUBAI
WILL LIST A NEW SMALL GOLD CONTRACT
ON THE SPOT MARKET. CASH & CARRY
WILL COME TO THE MAJOR PERSIAN
GULF NEXUS. $$$

Dubai has been a gold trading center in the Middle East for
decades. Its size has grown exponentially
in recent years. A shift has come
from the older Souk markets to the
Dubai Gold & Commodities Exchange
(DGCX). The exchange is planning
to launch a spot gold contract next
year, the first of its kind in the
Middle East. The goal is to move the emirate from a regional to a more
international gold trading center.
Amazingly, about 25% of all the physical
gold traded around the world passes
through Dubai,
the commercial hub of the United
Arab Emirates.
The DGCX strives to expand its trade,
which has grown from $6 billion in
2003 to $70 billion last year, according
to data from the Dubai Multi Commodities
Centre. The trend is gold volume shifting
from West to East, from London,
New York, and Zurich to Dubai, Shanghai, Hong Kong, and Singapore.
The Dubai emirate
has adopted the title City of Gold.

Dubai is well-situated between producers in Africa and consumers in Europe and Asia.
Around a quarter of the gold that
passed through Dubai in 2012 made
its way to India, which in 2012 accounted
for nearly a fifth of global physical
demand, according to the World Gold
Council. The DGCX currently serves
as a gold futures trading platform,
but it requires spot contracts to
complement the robust physical market.
They seek to complement the gold market
in the region itself and also the
global market, making it easier to
trade gold. Note in the graphic, a
breakdown is not available for 2012
yet. The size of the spot gold contract
will probably be 1 kilogram (32 ounces).
It will be cash & carry with size
in kilograms, not the LBMA ounces.
Big changes are coming, the hint being
the kilogram designation that China, India,
and all Asia
prefer. See the Bloomberg article
(CLICK HERE).

◄$$$ INDIAN GOLD IMPORTS SLIDE, BUT EXPORTS JUMP. INDIA
MULLS OVER EASING GOLD IMPORT RESTRICTIONS.
A VERY LOW GOLD IMPORT TOTAL OF 500
TONS IS LIKELY FOR THE FULL FISCAL
YEAR. THE 80-20% RULE FOR DOMESTIC
REDIRECTION TOWARD EXPORT WILL BE
RELAXED. $$$

Bragging rights for India are soon to go away.
The grand subcontinent is fast slipping
away from its position as the world's
#1 consumer of gold. A senior official
of the Metals & Minerals Trading
Corp (MMTC) has noted that due to
Indian Govt restrictions, gold
imports are likely to decline by 41%
to 500 tons this financial year.
MMTC is the largest bullion player
in India. Around 400 tons were imported in the first
six months of this fiscal year, with
no more than another 100 tons expected
to be imported by the end of the financial
year. The Diwali season and the Christmas
season will see muted responses. Both
August and September saw very low
imports. High gold imports, which
totaled $53.8 billion in the last
fiscal year, have contributed to India's high current account deficit of $88.2
billion in 2012-13. See the MineWeb
article (CLICK HERE).

Reduced demand for gold, lower demand for imports generally, a tempered demand
for crude oil, and an improvement
in exports have brought satisfaction
to the Indian Govt officials. Despite
the boost in October gold imports,
traders are expecting a reversal of
curbs related to gold imports. An
official of the All India Bullion
& Jewellers Assn said, "All
the signs appear to be looking good.
The inward shipment of the precious
metal has been severely compressed
in the current fiscal. FOREX reserves
are rising. The announcement to ease
some of the restrictive norms should
be out soon." The next step
is expected for the Indian Govt and
the Reserve Bank of India to ease the very unpopular
80:20 rule with regard to gold imports.
The rule requires importers of the
commodity to supply at least 20% of
their imports to exporters. On July
22nd, the RBI issued a rule that one
fifth of all gold purchases by importers
must to be exclusively made available
to exporters in their commercial trade.
It had further directed that only
80% of the gold imported could be
used for domestic purposes, exclusively
by entities in the jewelry business,
bullion dealers, and banks. The Indian
Finance Minister Chidambaram expressed
glee at lower gold imports. Even though
imports rose to 23.5 tons in October
from 11.164 tons in September, the
increase is not troublesome in his
view. He indicated the official position
is compatible with gold imports at
about 20 tons per month. This is clearly
political spin, since the pushback
on the official policy has caused
a firestorm of protest. Lower gold
imports help to reduce the nation's
high current account deficit. See
the MineWeb article (CLICK HERE).

◄$$$ INDIA'S DEPARTMENT OF POSTS
PLANS TO FLOAT GOLD COIN TENDER, WHILE
OTHERS CRY FOUL. THE RIGHT HAND OF
INDIA
OPPOSES THE LEFT HAND, INDICATIVE
OF INTERNAL CONFLICT ON GOLD POLICY.
GOLD COIN SALES WILL POSSIBLY BE CONDUCTED
AT 1000 OF THEIR POST OFFICES. $$$

A battle appears to be brewing between the Indian Govt and the Dept of Posts,
which has floated a tender for gold
coin sales through some 1000 post
offices. The sales would be done on
commission, the contract valid for
two years, the items not marked for
import. In the past, the postal department
would sell coins imported from Valcambi
Switzerland. The Indian Govt
restricts gold demand, by contrast.
The battle to relieve the high
Current Account Deficit continues
among policy makers, which has harmed
the Rupee currency exchange rate.
The common man has carried the burden
with high inflation and rising fuel
prices. Amidst restricted business,
both public sector units and private
banks in some cases are still openly
selling gold coins across the counter
in defiance. However, the major jewelers,
banks, and other financial institutions,
who were earlier aggressively promoting
coins and medallions, have quickly
halted sales of the low margin product.

The Federation also asked its members to stop sales of coins and bars to retail
customers. Retailers have shunned
gold coins also. Tanishq stopped the
sale of gold coins since August. Coins
used to account for 10% of national
gold sales over the past few years
at the store's many retail outlets.
Banks are also part of the pressure
to cut back. The Indian Overseas Bank
commented that the bank had been selling
more than 1000 kilograms of gold coins
every year, yet the total quantity
sold this year was around 580 kgm.
No coins had been sold for over five
months at the bank. Similarly, Federal
Bank's gold coin sale has been cut
in half this financial year, from
609 kilogram in FY13 to 300 kgm in
FY14 so far. See the MineWeb article
(CLICK HERE).

## STRONG DEMAND & ACUTE SHORTAGE

◄$$$ ASIAN CENTRAL BANKERS MADE A SHOCKING ADMISSION ABOUT THE WEST. THEY
OPENLY ADMIT THE WEST LACKS THE GOLD
TO ADEQUATELY SUPPORT THE FRACTIONAL
GOLD BANKING SYSTEM. CHINA COULD BLOW UP THE GOLD
MARKET OR USTREASURY BOND MARKET ANYTIME
THEY WISH. AT SOME POINT IN TIME,
THE GOLD WILL RUN OUT WITHIN THE CORRUPTED
MARKET. NO GOLD PRICE WILL BE OFFERED.
THEN THE GOLD PRICE WILL BE SUDDENLY
RESET MUCH HIGHER. $$$

Chris Powell is the top notch news journalist turned head of the Gold Anti-Trust
Action committee, often called GATA.
He recently made detailed presentations
to two Asian central banks. In return,
they spoke openly with him. One central
banker offered some important information
on a volunteer basis. The Asian
banker admitted that most central
bankers are aware of the fractional
reserve nature of the Western gold
banking system, and its high vulnerability.
They know full well that gold bullion
does not back all of the claims floating
around the world financial system
as paper certificates, specifically
in the West. Be sure to know that
central bankers never make such admissions.
This is a shocker actually. So conclude
the Eastern central bankers are breaking
ranks from the West.

Powell said, "Eastern central bankers are doing a very delicate dance,
as China tries to hedge its disproportionate
US dollar foreign exchange reserves
with gold and other hard assets, without
exploding both markets (gold and the
dollar). Nothing major happens in
the gold market from day to day without
China's consent.
China
could blow up the gold market any
time it wanted. It could also
blow up the US dollar market, the
US
interest rate market, and bond markets
any time it wanted."

Powell went on to describe a severe upcoming disruption. He expects the the
official gold price to go dark (none
offered from suspension), with no
viable gold market in function. He
concluded, "I suspect that
either that will happen, and the gold
that is available will run out, or
more likely the central banks will
see what is coming and arrange an
international currency revaluation.
At that point there will be chaos
in the gold and currency markets,
but in the end this will mean substantially
higher gold after the official reset
of the international gold price."
See the King World News interview
(CLICKC HERE).
Many stories indicate a major reset
imminent, the global pressure building.

◄$$$ GOLD POURS INTO CHINA TO MEET RECORD DEMAND,
SOME BYPASSING HONG KONG. CHINA WILL EASILY OVERTAKE INDIA AS THE #1 CONSUMER
IN THE WORLD. THE SOURCE TO MEET MUCH
CHINESE DEMAND COMES FROM SWITZERLAND,
OFTEN CONVERTED FROM ETFUND GOLD RECAST
INTO KILOBARS. $$$

China will surpass India
this year as the world's top gold
consumer. The data can be confusing,
due to the Hong
Kong window. China has imported nearly 20% more bullion than
data indicates from its traditional
conduit in Hong
Kong. Other routes are used. Gold
shipped from Hong
Kong to the mainland nearly tripled
to 855 tons in the year through September.
More direct shipments have arrived,
with a surge in China's gold purchases, the total measured at
least 133 tons. Data is from Global
Trade Information Services (GTIS).
The internal shipments could be even
higher since central bank purchases
are not include. Cameron Alexander,
manager of Asian precious metals demand
with metals consultancy GFMS, echos
the message. He believes the Hong Kong data is partial and incomplete, given rising direct flows
to the mainland. The estimate of 133
tonnes is based on data from the top
20 gold exporters in the world that
publicly disclose such information.
It must understate the total since
Britain
and Switzerland
do not provide complete details. The
source of much direct China shipments has been these
two important sites. The 133 tonnes
does not include gold bought by the
Peoples Bank of China.
Industry watchers estimate Chinese
reserves might be declared in the
range from 4000 to 5000 tons by next
year.

After a surge seen in demand for gold (jewelry, bars, coins), the World Gold
Council forecasts Chinese gold
purchases will top 1000 tonnes in
full year 2013. The volume is
well ahead of India
where government restrictions are
in place. At the same time, redemptions
from gold backed exchange traded funds
(ETFs) have risen sharply as the price
of bullion has fallen, 650 tons from
the top eight funds so far this year.
Much of the fund exits have headed
to China
from Europe.
The fraud in the ETFund management
on unauthorized raids is another matter
entirely. Refiners say they have been
converting 400-ounce bars typically
bought by ETFs into 1-kg bars to be
shipped to China,
popular as jewelry input and investment
kilobars. The great recast trend
continues apace, hiding the identity
of the often improperly secured gold
bars. Scott Morrison of gold refiner
Metalor confirmed the trend by "We
see huge flows of gold in and out
of Switzerland,
an inflow of large bars, which we
convert to smaller bars. From April
to August, we saw very large volumes
from all our refineries headed to
Asia." He added that the bulk of the refiner's output in Hong
Kong went to China.
Bernhard Schnellmann of the major
refiner Argor-Heraeus in Switzerland, claimed that of the converting ETF
bars, about 70% of their kilobar production
was being shipped to China. In years back, the
amount was zero. He called China the new kid on the block, already a very
big kid. See the Reuters article (CLICK
HERE).

◄$$$ CHINA HAS TAKEN CONTROL OF
THE PHYSICAL GOLD MARKET. WHEN ITS
INFLOW EXCEEDS GLOBAL MINE OUTPUT,
THE RIGGED GAME AT THE COMEX WILL
BE OVER. THE INFLOWS ARE ALREADY ON
PACE TO EXCEED GLOBAL OUTPUT. THE
PRESSURE TO BREAK THE COMEX/LBMA STRANGEHOLD
HAS BEGUN, ALREADY WELL ALONG. $$$

◄$$$ TURKEY GOLD DEMAND HAS SPIKED
TO AN 8-YEAR HIGH. THE FACTORS AT
WORK ARE A PRICE DECLINE, AND INCREASED
ROLE AS IRAN
INTERMEDIARY. $$$

As gold prices have fallen, Turkey has vastly ramped up
its purchases, whether for private
hands or central bank holdings, even
settled trade with its neighbor. Turkey's
gold imports have doubled this year,
on pace to reach the highest level
since 2005. The swing state nation
imported 251.4 metric tons of gold
since January, the biggest tonnage
increase since at least 1995.
The demand for year 2013 is almost
60% higher than 2012. On the global
billboard, Turkey
was the fourth largest buyer of gold
last year, after India, China,
and the United
States. See the
Zero Hedge article (CLICK HERE).
Although the data supports the claim
that Turkey
is on the rise with gold accumulation,
the real unstated story is Iran. The Turkish intermediaries
work diligently to supply Iran in net trade settlement. The data in the
chart owes to the Iran
factor, the Turks serving as key facilitators.
The workarounds on sanctions are vigorous
and effective. Damage is done from
sanctions, but facilitated trade continues.

From his native corner of the world, EuroRaj added "The Turkish financial
system is in a mess. Their banks are
at the mercy of Qatar, which owns their short-term
debt. There is no conceivable way
Turkey has the export capability or the USD/EUR
reserves to be buying this amount
of Gold." Hence conclude
that the Turkish window is being funded
by the Persian Gulf, probably Iran with perhaps a Qatari
hand. The vast Iranian energy sales
are the driving force behind this
gold flow.

◄$$$ A SILVER SHORTAGE HAS GONE GLOBAL, AS EVIDENCE POINTS TO A MASSIVE
CHINESE ORDER CAUSING A SILVER SHORTAGE
IN EUROPE. UNUSUALLY
LONG DELAYS HAVE TURNED ROUTINE AMONG
SWISS REFINERS. THE SHORTAGE HAS EXTENDED
TO SCRAP SILVER AND OLD FRENCH COINS.
$$$

Something big is brewing in Europe over silver, as a shortage has cropped up suddenly. The finger
is pointed at China as culprit. Cyrille Jubert is author of
"Silver Throughout History"
and has shared the story. Great stress
has hit the silver market. A contact
of his from one of the largest European
precious metals brokers reported their
inability to find any silver.
All the refiners they contacted could
not take their orders, offering a
suggestion to call next month. Never
has such an event occurred in the
past. In late October, an attempt
was made to source one ton of silver
(32,000 oz) from the three main Swiss
refiners. Two of them refused to take
the order entirely, and the third
refiner stated delivery would take
two weeks. The refiners claimed
they had been very busy during the
last month trying to fulfill an enormous
Chinese order. They refused to divulge
how enormous this demand was due to
professional secrecy, but it seemed
to me it was a sovereign (government)
order. As India
increased its 2012 silver imports
by 4000 tons this year, the silver
market has gone tight. The Chinese
demand saturates the capacity of refiners.
Conclude CHINDIA is putting enormous
stress on the silver market. Maybe
the market stress would not be present
if the silver price were properly
raised to $50 or $60 per ounce. The
real market is a bitch!

Earlier in the year, in particular July and August, the Swiss refiners could
not refine silver ore. Due to a string
of huge gold orders, they were forced
to focus all their capacity on meeting
the orders. This explains the actual
European silver shortage. A Swiss
friend of Jubert's, whose company
specializes in silver scrap, mentioned
that the Swiss refiners were very
busy refining silver ore arriving
from the mines. They have recently
been quoting between five and six
weeks to refine silver scrap, twice
the usual time. In addition, all
the old French silver coins seem to
have vanished. His contacts who used
to trade 500 kgm per day in such special
coins between 2007 and 2011, reported
that in spring months of 2012, not
a single month was this volume traded.
For the past six months, the coins
dealers have had no vintage French
silver coins to sell, even the black
market completely dry. See the
Silver Doctors article (CLICK HERE).

## BARRICK MESS IN SHOWCASE

◄$$$ THE EMBATTLED BARRICK GOLD IS IN A DEATH SPIRAL. THE PASCUA LAMA
PROJECT IS SUSPENDED. THE PAST HEDGEBOOK
WITH HUGE HOLES CONTINUES LIKE A CANCER
TO EAT ITS BALANCE SHEET, NEVER GOING
AWAY. THE TOXIC BARRICK STOCK IS TO
BE DILUTED, AND A BIG SHARE SALE FAILED WITH A 5% DISCOUNT. THE CHAIRMAN MONK
WILL FINALLY RETIRE. EVEN MULRONEY
WILL EXIT. $$$

It is difficult to conceive of a story more ugly dire and rancid. Amidst local
pressure, legal dispute, and other
challenges like challenges to mining
rights, the huge Pascua Lama project
has been suspended. The $10 billion
project failure has been a major black
hole with ball & chain combined.
The project located on the Chile-Argentina
border has been frequently cited in
the Hat Trick Letter over the past
several months with updates. It will
be suspended finally, a sink of costs.
Investors should never forget the
two secondary stock issuances to cover
its hedgebook of past ruinous forward
gold contract sales. Neither was properly
used after the funds were raised,
which could be fraud, but not in this
world with fine print and tiny font.
The hedge book remains in effect,
never covered. See the Financial Post
article (CLICK HERE).

In an attempt to capitalize its loss, Barrick Gold Corp announced a move to
raise more than US$3 billion in a
discounted share sale, after the disclosed
suspension of work at the Pascua Lama
(PL) mine location. The company had
been relying upon the giant project
for a large share of future gold production.
Originally Barrick had said it expected
Pascua Lama to contribute in annual
production 800,000 ounces of gold
in 2003. It has been plagued by political
opposition, permit issues, labor unrest,
cost overruns, and a sharp drop in
bullion prices. Back in July 2012,
the company revealed higher PL costs,
like 50% to 60% greater than estimated
much earlier. The new price tag was
expected to be between $7.5 billion
and $8.0 billion, the full review
hardly complete. Back in November
2012, the company pushed back the
PL production date to the second half
of 2014 from its previous target of
mid-2014, and increased the total
cost estimate to possibly $8.5 billion.
They cited construction delays and
higher labor and project management
costs.

By April 2013, the company honored a court ordered halt to construction at PL
in response to indigenous community
claims. The project was allegedly
destroying nearby Andes
glaciers and harming the regional
water supply. By May 2013, the Chilean
Govt ordered Barrick to halt PL construction,
slapping a $16 million fine on the
company for serious environmental
violations. By July 2013, a Chilean
court suspended the PL construction
until Barrick could build an adequate
infrastructure to prevent water pollution,
and ordered a review of the contract
permit. By October 2013, analysts
and shareholders expected Barrick
to raise the cost estimate for the
Pascua Lama project, now a recognized
black hole with ball & chain,
possibly to between $9 billion or
$10 billion. Barrick announced
it will halt development indefinitely.
See the Reuters article (CLICK HERE).

◄$$$ THE BARRICK STOCK DECLINE IS A CLASSIC BROAD FAILURE. $$$

The bought deal was the third largest in Canadian history, according to Financial
Post data. It was priced during the
late October offering at US$18.35
per share, which included a 5.4% discount
to the Barrick closing price at the
time. The issuance was led by RBC
Capital Markets, Barclays, and GMP
Securities. There is significant dilution
with the market capitalization around
$19.4 billion. After the failed secondary
issuance, the stock share price again
fell hard. Currently ABX last traded
at $16.38 per share. A very serious,
very ugly, and very public collapse
is in progress, a classic waterfall
decline. The 20-week moving average
appears to be guiding the stock lower.
It will retest the impulse lows near
the 14 level. Notice the volume rose
with the downward moves, a horrible
sign, usually regarded as a negative
signal for retest of the lows. Worse,
the cyclicals are dire. The MACD (moving
average convergence divergence) indicates
the worst has yet to come, as the
next turndown could gain more momentum.
Also, the slow stochastix indicates
nowhere near has bottom been found
with an oversold condition. Past low
oversold levels seen in the first
half of 2013 have not been reached.

◄$$$ BARRICK CEO MONK TO RETIRE FOLLOWING A LOUSY STOCK OFFERING THAT
WOULD HAVE CAPITALIZED THEIR PASCUA
LAMA PROJECT DISASTER IN SOUTH AMERICA.
THE PATHOGENESIS WILL NOT BE TOWARD
DEATH, BUT RATHER RESURRECTION WITH
NARCO MONEY. THE GOLD CARTEL CANNOT
AFFORD A FAILURE AND POST MORTEM ANALYSIS.
EXPECT A SPATE OF ACQUISITIONS WITH
MYSTERIOUS SECRETIVE FUNDS. THE TARGET
WILL BE A MULTITUDE OF BEATEN DOWN
MINING FIRMS. $$$

Barrick Chairman Peter Munk will be a victim of the Barrick Gold wide array
of woes. He will retire following
the disastrous new share issuance
faltered. The Pascua Lama project
losses will not be capitalized. The
official word is a 'Tepid Response'
to the company's US$3 billion share
sale, which went undersubscribed.
Bankers working on the deal admitted
that there were orders for only 75%
of the deal. They could not find enough
idiots, morons, fools, and dupes to
buy the stock. The underwriters had
to do serious clean-up, which ate
into their earned fees. The fees were
set to amount to $90 million, certainly
after the mining dust settles to be
a loss.

Some investors had indicated they wanted more clarity on the board revamp before
agreeing to buy any stock. A warning
was given on a shakeup for its board.
A source indicated that a succession
plan would be announced soon for both
Munk and another long-term board member,
former prime minister Brian Mulroney.
The political figure's presence on
the board should be taken as a crystal
clear hint how the Canadian Govt gold
vanished into the gold market in its
price suppression. Canada is an accomplice to
Wall Street. The company might talk
of recovering the Pascua Lama costs,
and of reform with cost cutting, but
this mining firm for now is dead kaput.
Look for a strange sequence of events
to unfold.

In no way can Wall Street afford to see the Barrick tool
fail. A failure would involve an army
of accountants and attorneys poring
over corruption in the contract filing
cabinets. A failure would reveal sordid
details of the gold market price suppression
and culpability of both the USGovt
and Canadian Govt. They do not even want publicity of
the Barrick Evergreen contracts, used
to keep the gold price down, but never
to be paid back on the gold collateral.The Jackass feeling for a few
years has been that the large firms
like Barrick will be beneficiaries
of narcotics money from the USGovt
security agencies. Such is the back
end of their disgusting government
and bank sector relationships. Expect
no information whatsoever on mysterious
secretive investors who stepped forward,
only glee for their arrival. The objective
will be to replenish their balance
sheets, to restore their profitability,
to resume healthy production, to take
advantage of the attractive low gold
price, all after a new acquisition
program is put into gear. They will
target hundreds of small and medium
mining firms whose market valuations
are down low, in the dumps, selling
for pennies. See the Globe & Mail
article (CLICK HERE).